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Market Review

US: The three major U.S. stock indexes ended down more than 1% each on Thursday, led by a drop in the Nasdaq after this week's sharp gains and as investors were nervous ahead of Federal Reserve Chair Jerome Powell's speech Friday.

Asia: Asia-Pacific markets fell across the board as investors prepared for signals on U.S. monetary policy from central bankers’ comments at the Jackson Hole meeting on Friday, including a speech by U.S. Federal Reserve chair Jerome Powell.

India: The key benchmark indices started the day on a gung-ho note amid upbeat mood following the success of Chandrayaan-3 mission and positive global markets. However, nervousness ahead of the release of RBI meeting minutes, followed by the Jackson Hole Symposium tonight weighed on the market sentiment. Market is expected to open gap down and likely to witness selling pressure during the day.

Global Economy: The U.S. Treasury yields on the benchmark 10- year Treasury note climbed 4 basis points at 4.241%, after hitting a 16-year high on Monday. The yield on the 30-year Treasury bond rose 2 basis points to 4.304%. At the shorter end of the curve, yields were slightly higher. Yields move inversely to prices. The recent surge in 10-year yields to their highest level since November 2007 came as investors grappled with a surprisingly resilient U.S. economy and the possibility that inflation sticks around, forcing the central bank to keep interest rates higher for longer. Major U.S. department stores including Macy's and Nordstrom are flagging delays in store credit card repayments, another risk to revenues as consumers pull back from discretionary spending ahead of the crucial holiday shopping season. Macy's executives disclosed that rising delinquencies cut credit card revenues to $120 million in the second quarter, down $84 million from the previous quarter. While Nordstrom's credit card revenues rose 10% in the first half of this year, company executives said that delinquencies are now above pre-pandemic levels and could result in higher credit losses in the second half and into 2024.

Commodities: Gold prices steadied near two-week highs on Friday and was headed for their best week in six as U.S. Treasury yields backed off highs ahead of speeches by top central bankers including Fed Chair Jerome Powell. Oil prices fell slightly in early Asian trade on Friday, on track for a weekly decline as weak manufacturing activity hurt the global demand outlook and the dollar remained buoyant

Currency: The U.S. dollar sat at an over two-month peak on Friday, on course for its sixth straight week of gains as markets await a speech from Federal Reserve Chair Jerome Powell to gauge the path of monetary policy.

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