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Market Review

US:

US stocks plummeted following a disappointing start to the mega-cap earnings season. After driving the rally for most of 2024, big tech pulled the markets down on Wednesday, with the S&P 500 seeing its sharpest decline since December

Asia: Markets in Asia-Pacific region extended their downward move Thursday as technology stocks tumbled on Wall Street after traders started to pull back from artificial intelligence driven frenzy.

India India's benchmark equity indices fell for a fourth consecutive session on Wednesday, logging their worst streak since five consecutive sessions of decline till May 30. Market is expected to open gap down note and likely to witness selling pressure during the day

Global Economy: South Korea's economy unexpectedly shrank in the second quarter to log the sharpest contraction in six quarters as slumping consumer spending undermined an export boom, reinforcing market expectations that an interest rate cut could be on the way soon. Gross domestic product (GDP) for the April-June period fell 0.2% from a quarter earlier in seasonally adjusted terms, data from the Bank of Korea showed. That came after an expansion of 1.3% in the first quarter, the fastest quarterly growth since the fourth quarter of 2021. The U.S. trade deficit in goods narrowed in June for the first time this year amid a broad rebound in exports, but that probably was insufficient to prevent trade from remaining a drag on economic growth in the second quarter. The impact on gross domestic product from the trade gap is, however, likely to be offset by a rise in inventories at wholesalers and retailers in June. The government is scheduled on Thursday to publish its advance estimate of second-quarter GDP growth, which is expected to show a pick-up in activity, thanks to a spurt in consumer spending in June.

Commodities Gold prices were little changed on Thursday as investors waited for U.S. economic data to gauge the timing of the central bank's interest rate cuts. Oil prices eased on Thursday as concerns over weak demand in China, the world's largest crude importer, and expectations of a nearing ceasefire deal in the Middle East overcame gains in the previous session after draws in U.S. inventories.

Currency Ahead of the Bank of Japan's policy meeting, the yen gained support due to unwinding carry trades. The Australian and New Zealand dollars struggled as commodity prices declined. The euro was pressured by weak PMI data, while the U.S. dollar held steady pending growth figures. Investors are cautious about risk sentiment.

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