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Market Review:

US

Wall Street lost ground on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs in a broad sell-off driven by uncertainties surrounding the pace of the U.S. economic recovery.

Asia:

Shares in Asia-Pacific fell in Friday morning trade as investors reacted to the release of Chinese inflation data.

India:

Bears forced domestic stock markets to end deep in the red on Thursday. The Indian market suffered strong losses with the benchmark Sensex falling 626 points and Nifty falling below 15,700 in intraday trade. At close, the Sensex closed at 52,568.94, down 485.82 points, or 0.92%, while the Nifty was at 15,727.90, down 151.75 points or 0.96%. Market is expected to open gap down and likely to witness selling pressure during the day.

Global Economy:

China’s factory inflation eased in June from an almost 13-year high in the previous month as a stronger dollar and government measures helped to cool commodity prices. The producer price index rose 8.8% from a year earlier after jumping 9% in May. That was the same as the median forecast of economists. Consumer prices increased 1.1% from a year ago, lower than in May and below the estimate of 1.2%. The number of Americans filing new claims for unemployment benefits rose slightly last week but continuing claims dropped, another indication that the labor market recovery from the COVID-19 pandemic continues to be choppy. Businesses have reopened at a rapid clip, boosted by a rollback in restrictions now that more than 155 mn Americans have been fully vaccinated against the coronavirus. Still, the job market rebound has been anything but steady despite recent employment gains. Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 373,000 for the week ended July 3. Economists forecasted 350,000 applications for the latest week.

Commodities:

Oil was down Friday morning in Asia even if data released on Thursday said U.S. fuel inventories fell and demand surged as economic recovery drove consumption. Gold prices on Friday were set for the third straight weekly gain, as a slight pullback in the dollar made bullion less expensive for other currency holders, while a drop in U.S. Treasury yields also offered support to the safe-haven metal.

Currency:

The dollar is winning over some of its detractors who have been pushed off the bearish bandwagon after the Federal Reserve's hawkish tilt started the countdown on policy tightening much earlier than expected.

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