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Market Review

US

Wall Street ended sharply higher at the close of a broad rally on Thursday, bouncing back from three straight days of selling on upbeat labor market data.

Asia

Asia Pacific stocks were mostly up Friday with investors shifting their focus to value from growth companies as signs of a strengthening U.S. labor market calmed inflation worries

India:

Indian benchmark indices Sensex and Nifty closed 1% lower on Wednesday, extending losses from the previous day, tracking Asian markets which fell amid surging commodity prices and growing inflationary pressure in the US. Banks, metals and IT stocks were the biggest laggards. Sensex ends 471 points lower at 48,690.80 and Nifty settled at 14,696.50

Market is expected to open on a flattish note and likely to witness range bound move during the day.

Economy

U.S. inflation surged to its highest rate since the eve of the 2008 financial crisis in April, as last year's collapse in oil prices and a nascent economic recovery combined to generate the kind of number that many market participants have feared.The consumer price index rose 4.2% from a year ago, well above consensus forecasts for 3.6%. The number of Americans filing new claims for unemployment benefits dropped to a 14-month low last week as companies held onto their workers amid a growing labor shortage that helped to curb employment growth in April. Initial claims for state unemployment benefits dropped 34,000 to a seasonally adjusted 473,000 for the week ended May 8. That was the lowest since mid-March 2020, when mandatory closures of nonessential businesses were enforced to slow the first wave of COVID-19 infections. U.S. mortgage rates fell for a second straight week, dropping closer to the lowest on record.The average for a 30-year loan was 2.94%, down from 2.96% last week and the lowest since Feb. 18

Commodities:

Oil prices fell on Friday after dropping about 3% a day earlier as coronavirus cases remained high in major oil consumer India and as a key fuel pipeline in the United States resumed operations after being shut due to a cyber attack. Gold edged lower on Friday, as a firmer dollar made bullion more expensive for other currency holders, although a pullback in the U.S. Treasury yields limited losses for the safe-haven metal.

Currency:

The dollar took a breather on Friday but looks set to post weekly gains against a basket of currencies as investors try to assess the risk of U.S. inflation rising faster than expected and prodding the Federal Reserve to hike interest rates sooner.

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