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Market Review

US: US stock market indices ended sharply lower on Friday, dragged by heavy selling in technology and financials, amid worries over more interest rate hikes and the escalation of the Israel-Hamas war.

Asia: Asian markets traded lower on Monday as risks of a wider conflict in the Middle East dented investor sentiment ahead of a week of inflation data across Asia-Pacific region with data on US growth and inflation.

India: Domestic equity benchmarks the Nifty 50 and the Sensex ended in negative territory for the third consecutive session on Friday. Market is expected to open on a negative note and likely to remain cautious during the day. 

Global Economy: The U.S. government on Friday posted a $1.695 trillion budget deficit in fiscal 2023, a 23% jump from the prior year as revenues fell and outlays for Social Security, Medicare and record-high interest costs on the federal debt rose. The deficit was the largest since a COVID-fueled $2.78 trillion gap in 2021. It marks a major return to ballooning deficits after back-to-back declines during President Joe Biden's first two years in office.

Canadian retail sales experienced a 0.1% drop to 66.08 bn Canadian dollars ($48.16 bn) in Aug, the first decline in five months. Despite this downturn, retail sales were still up by 1.6% compared to the same month last year. The retail sales remained steady in Sep, with no significant changes reported. The Canadian economy has been underperforming due to high inflation and elevated interest rates, which have negatively impacted demand. The Bank of Canada has kept its policy rate at a 22-year high of 5% following consecutive increases

Commodities: Gold prices fell on Monday, retreating from a five-month peak scaled in the previous session, as robust US Treasury yields cut demand for the non-yielding asset ahead of key inflation and economic growth data due later this week. Oil prices eased on Monday as aid convoys started to arrive in the Gaza Strip over the weekend amid diplomatic efforts to contain a conflict between Israel and the Palestinian Islamist group Hamas from spreading to the wider oil-rich region.

Currency: Japan's yen took the spotlight in Asia on Monday, circling the 150-per-dollar level in a tug of war between investors betting on a further rise in dollar yields and those expecting Japanese authorities will intervene in markets

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