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Market Review

US

The Nasdaq was the worst performing major index, but closed near session highs to cede 0.4%. The S&P 500 also fell, but closed down a more moderate 0.3%. The Dow Jones Industrial Average fell back toward its 50-day line, despite being the best performing major index. However it fell less than 0.2%, losing around 50 points in the process

Asia

Shares in Asia-Pacific jumped in Tuesday morning trade, as investors reacted to the release of Japan’s first quarter gross domestic data.

India:

A sharp drop in Covid-19 cases lifted benchmark indices nearly 2% higher on Monday as investors cheered sooner-thanexpected peaking of the second virus wave. The frontline S&P BSE Sensex zoomed 848 points to settle the day at 49,581 levels, lifted largely by financial counters. Market is expected to open gap up and likely to witness positive move during the day.

Global Economy:

Confidence among U.S. homebuilders stabilized in May despite rising costs and shrinking availability of most construction materials. A gauge of builder sentiment held at 83. Historically low mortgage rates are helping offset soaring property prices and lumber and materials costs that have skyrocketed as housing demand and renovations strengthened during the pandemic. In a sign that the market remains strong, a gauge of sales expectations in the next six months rose slightly.

China's factories slowed their output growth in April and retail sales significantly missed expectations as officials warned of new problems affecting the recovery in the world's secondlargest economy. While China's exporters are enjoying strong demand, global supply chain bottlenecks and rising raw materials costs have weighed on production, cooling the blistering economic recovery from last year's COVID-19 slump. Factory output grew 9.8% in April from a year ago, in line with forecasts but slower than the 14.1% surge in March.

Commodities:

Oil held gains near a two-year high with optimism building about the demand outlook in key regions such as the U.S., even as the coronavirus makes a comeback in parts of Asia. Gold prices on Tuesday rose to their highest in more than three months as a weaker U.S. dollar and grwoing inflationary pressure lifted bullion's appeal as an inflation hedge.

Currency:

The U.S. dollar found pockets of support in Asia on Monday, but struggled to post gains, as investors are heavily positioned for it to fall further while the U.S. Federal Reserve holds interest rates low and U.S. trade and current account deficits grow.

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