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Market Review :

US:

Markets remained unsettled on Wednesday as technology stocks continued to fall, dragging down stock indexes across the world for a second consecutive day. The market tumble that began in the United States on Tuesday continued across Asia and Europe as concerns about the global economy and major tech companies like Nvidia spread among investors.

Asia:

Asian share markets tried to regain their footing on Thursday after a steep sell-off, while a rally in Treasuries dented the dollar and lifted the yen as U.S. economic worries raised the odds of the Federal Reserve going big on rate cuts.

India:

The Indian benchmark indices took a breather from a record rally to close lower on Wednesday as sentiment was hit after a rout in global stocks. The closing came after Asian stocks plunged, tracking the overnight losses in the US markets, led by weak economic data and easing oil prices on weak global demand. Market is expected to open gap up and likely to witness positive move during the day.

Global economy:

U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labor market was losing steam, but the reduction on its own is probably not enough to warrant a halfpercentage-point interest rate cut by the Federal Reserve this month. The larger-than-expected decline in unfilled jobs shown in the Job Openings and Labor Turnover Survey, or JOLTS report, from the Labor Department on Wednesday meant there were 1.07 open positions for every unemployed person in July. That was the least since May 2021 and down from 1.16 in June. The vacancies-to-unemployed ratio peaked just above 2.0 in 2022. Bond market ‘yield curve’ returns to normal from inverted state that had raised recession fears: The relationship between the 10- and 2-year Treasury yields briefly normalized Wednesday, reversing a classic recession indicator. Following economic news that showed a sharp decline in job openings and dovish remarks from Atlanta Fed President Raphael Bostic, the benchmark 10- year yield inched above the 2-year for the first time since June 2022. The respective yields were both around 3.79% on the session, with just a few thousandths of a percentage point separating them.

Commodities:

Oil was attempting to hold its line in early trade on Thursday after an overnight sell-off, as players grappled with weak demand alongside a possible delay to more supply entering the market next month. Gold was little changed on Thursday as investors kept to the sidelines ahead of U.S. payrolls data that could provide more clues on the size of an expected rate cut this month.

Currency:

The dollar dipped on Thursday as traders ramped up bets for a supersized rate cut from the Federal Reserve (Fed) later this month, with the yen a notable outperformer on safehaven demand as concerns over the US economy's growth outlook resurfaced.

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