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Market Review

US: All major US indices fell more than 1.5% following hotterthan-expected inflation data. The S&P 500 and Nasdaq 100 fell 1.4% and 1.6% respectively recording the biggest CPI-day fall since September 2022.

Asia: Share indices in Asia-Pacific region were trading sharply lower, tracking similar move on Wall Street, as higher-thanexpected U.S. CPI data pushed back traders' expectation of rate cuts by the Federal Reserve anytime soon

India: India's benchmark indices ended higher on Tuesday led by gains in Reliance Industries Ltd. and banking stocks, ahead of the release of U.S. January CPI data. Market is expected to open gap down and likely to witness profit booking during the day. Global Economy: A surge of factory building fueled by Biden administration investments in "strategic sectors" such as clean energy and semiconductors has so far flowed disproportionately to U.S. counties with relatively distressed economies and notably has not tracked "Democratic geography."Since 2021, a group of counties with relatively low employment rates for prime-age workers and low median household incomes - while accounting for only about 8% of national GDP - snared 16% of the $525 billion in announced investments

U.S. consumer prices rose more than expected in January amid a surge in the cost of rental housing, but the pick-up in inflation did not change expectations the Federal Reserve will start cutting interest rates in the first half of this year. The increase in prices reported by the Labor Department on Tuesday was the largest in four months and occurred against the backdrop of labor market strength and economic resilience. Inflation is slowing, but probably not fast enough to encourage Fed officials to start easing rates soon.

Commodities: Gold price drops below the $2,000 psychological mark during the early Asian session on Wednesday. The stronger US inflation data exerts some selling pressure on the yellow metal as it diminishes hopes of an early rate cut. Oil prices fell in early Asian trade on Wednesday after a U.S. industry group reported crude stocks rose more than expected last week and as investors reined in expectations for interest rate cuts by the U.S. Federal Reserve.

Currency: The dollar and Treasury yields jumped as traders pared back expectations for the pace and scale of rate cuts by the Federal Reserve this year.

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