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Market Review

US: The yield on 10-year Treasury notes fell below 4%, with swap traders now fully expecting three rate cuts this year.

Asia: Japan's benchmark Nikkei 225 slumped over 5% on Friday as investors feared more rate hikes from the Bank of Japan in near future. Share indices in Asia-Pacific region were trading in negative in early trade as stocks on Wall Street stumbled on signs of week US economy.

India: India's benchmark equity indices continued their record run for the fourth consecutive session on Thursday, with the Nifty 50 crossing the key psychological level of 25,000 for the first time as sentiments brightened after US Federal Reserve Chair Jerome Powell hinted of a possible rate cut in September. Both indices closed at their highest levels. Sensex closed 0.15%, or 126.21 points, higher to end at a fresh record high of 81,867.55, and Nifty added 59.75 points, or 0.24%, to end at a fresh lifetime high of 25,010.90. Market is expected to open gap down note and likely to witness selling pressure during the day.

Global Economy: South Korea's consumer inflation ticked up in July on supply-side pressures after weakening for three straight months, official data showed on Friday, coming in slightly higher than market expectations. The consumer price index (CPI) in July rose 2.6% from the same month a year earlier, after hitting an 11-month low of 2.4% in June, while economists in a Reuters survey had expected a gain of 2.5%.

The number of Americans filing new applications for unemployment benefits increased to an 11-month high last week, suggesting some softening in the labor market, though claims tend to be volatile around this time of the year. The report from the Labor Department on Thursday also showed the number of people on jobless rolls swelling in mid-July to the highest level since late 2021.

Commodities: Gold prices firmed on Friday and were set for a weekly gain, driven by prospects of a Fed rate cut in September and rising tensions in the Middle East, while market participants awaited U.S. nonfarm payrolls data for further direction.

Oil prices rose on Friday but were set for a fourth weekly decline as signs of disappointing global fuel demand growth outweighed fears of supply disruptions in the key Middle East production region.

Currency: The safe-haven Japanese yen and Swiss franc traded near multi-month highs against the dollar on Friday after an unexpected slump in U.S. manufacturing fuelled fears of a downturn.

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