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USA: Major indexes closed sharply lower Thursday following hawkish comments from the Fed on Wednesday that signaled a peak interest rate above expectations.

Asia: Asia-Pacific markets traded lower as recession fears grow. Disappointing U.S. retail sales for November suggested inflation is taking a toll on consumers and raising fears that the Fed’s rate hikes are tipping the economy into a recession.

India: Sell-off in the equity markets intensified in late noon deals as investors dumped shares across sectors. Sentiment remained tepid across global markets after the US Federal Reserve hinted interest rates to peak above 5 % by the end of 2023. Moreover, the central bank raised interest rates by 50 bps in its December meeting to 4.25-4.5 %, the highest since 2007.

Global Economy: U.S. retail sales fell more than expected in November, but consumer spending remains supported by a tight labor market, with the number of Americans filing for unemployment benefits decreasing by the most in five months last week. Retail sales dropped 0.6% last month, the biggest drop since December 2021, after an unrevised 1.3% jump in October.

Japanese manufacturing activity contracted more than expected in December, as weakening demand further dented productivity, while activity in the services sector improved on a recovery in tourism. The PMI fell to 48.8 in early-December from 49 in the prior month, missing expectations for a reading of 49. A reading below 50 indicates contraction, with the index marking its second month in red.

Commodities: Gold prices were flat on Friday and set for a weekly loss, pressured by expectations of higher interest rates for a longer period by the U.S. Federal Reserve

Oil prices were muted on Friday as markets digested hawkish central bank signals and the partial reopening of a key CanadaU.S. pipeline, but were set for strong gains this week on the back of an improved demand outlook for 2023.

Currency: The safe-haven dollar held just below the month's high against the yen on Friday and maintained overnight gains versus other peers amid growing worries that continued monetary tightening at the world's biggest central banks could trigger a recession.

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