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Market Review

US: 

US stocks closed sharply lower on Monday, as an early lift from a strong retail sales report succumbed to a jump in Treasury yields and concerns about rising geopolitical tensions between Iran and Israel.

Asia: 

Benchmarks across Asia-Pacific region were trading lower for second session in a row Tuesday, tracking overnight losses on Wall Street. Traders are awaiting a slew of economic data from China, including GDP, retail sales.

India:

On Monday, the Indian stock market indices ended over a percent lower each for the second consecutive session dragged by selling across sectors amid rising tensions in the Middle East on the Iran-Israel conflict. Market is expected to open gap down and likely to witness selling pressure during the day.

Global Economy:

The Chinese economy grew more than expected in the first quarter of 2024, as sustained government stimulus measures helped spur some improvement in business activity, while national holidays helped buoy consumer spending. Q1 gross domestic product rose 5.3% year-on-year. The reading was above expectations of 4.8% and improved from the 5.2% print seen in the prior quarter. Quarter-on-quarter, GDP 1.6%, compared to a 1% increase in the prior month. The reading came as purchasing managers index data released for the first three months of 2024 showed some improvement in business activity, especially in the manufacturing sector. A key Federal Reserve facility that takes in cash from money market funds and others saw inflows drop sharply on Monday. The U.S. central bank's reverse repo facility took in $327.1 billion, down $80.2 billion from Friday, marking the lowest level of inflows since the facility took in $293 billion on May 19, 2021. The Fed's reverse repo facility exists to put a floor underneath short-term rates, taking in cash from eligible firms in loans collateralized with Treasuries held by the central bank.

Commodities:

Gold prices ticked up on Tuesday, hovering near record-high levels, as fears of escalating tensions in the Middle East drove investors towards the safe-haven metal. Oil prices rose on Tuesday amid heightened tensions in the Middle East after Israel's military chief said his country would respond to Iran's weekend missile and drone attack amid calls for restraint by allies.

Currency: 

The dollar stood just off its highest since early November against a handful of peer currencies on Tuesday, raising intervention worries as the yen languished at its lowest level since 1990 following hotter-than-expected U.S. retail sales.

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