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Market Review

US:

All three major U.S. stock indexes closed higher on Wednesday with a boost from the technology sector offsetting investor disappointment at an early morning inflation report, which crushed hopes the Federal Reserve would cut interest rates by 50bps next week. On Wednesday, the S&P 500 and Nasdaq Composite settled 1.07% & 2.17% higher, respectively. The Dow Jones Industrial Average advanced 0.31%.

Asia:

Markets in Asia-Pacific region rose on Thursday morning, tracking overnight gains on Wall Street after data showed core US inflation rose slightly more than expectation in August.

India:

The Indian benchmark equity indices snapped a two-day gain to close lower on Wednesday, led by a drag in Tata Motors Ltd. and HDFC Bank Ltd, as the markets await US inflation data set that will be released later in the day. Market is expected to open gap up and likely to witness positive move during the day.

Global economy:

Headline US consumer prices rose by 0.2% on a monthly basis in August, matching July's rate, but the core figure accelerated slightly, potentially denting the chances that the Federal Reserve will introduce a more aggressive cut to interest rates at its upcoming policy gathering. The month-on-month headline US consumer price index met economists' expectations, along with the annual figure, which slowed to 2.5% from 2.9% in July. The Bank of Japan must raise interest rates to at least 1% by late next year, hawkish policymaker Naoki Tamura said on Thursday, reinforcing the bank's resolve to persist with steady monetary tightening. It was the first time a BOJ policymaker publicly specified a level the central bank should eventually target in pushing up short-term borrowing costs. Tamura said the likelihood of Japan's economy sustainably achieving the BOJ's 2% inflation was improving, which meant the central bank must raise interest rates to levels deemed neutral to the economy by around late 2025.

Commodities:

Oil prices were flat on Thursday as concerns about lower demand erased the gains from the previous session spurred by Hurricane's Francine's impact on output in the U.S, the world's biggest crude producer. Gold prices were flat on Thursday following the release of the U.S. inflation print, while traders shifted their attention to the upcoming economic data that could impact the Federal Reserve's policy decision.

Currency:

The US Dollar Index (DXY) a measure of the value of the USD against a basked of six other currencies, lost its ground after the release of mixed inflation data for August

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