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Market Review

US:

US stocks made a strong recovery, and bonds declined after a recent US labour-market report eased concerns about a significant slowdown in the country.

Asia:

Asian indices opened higher tracking overnight gains in the US market. Japan's Nikkei rose the most by 1.56%, Australia's S&P ASX 200 and South Korea's Kospi were also up more than 1%.

India:

The Indian benchmark equity indices erased initial gains on Thursday after the RBI monetary policy committee maintained status quo and ended lower. Market is expected to open gap up and likely to witness positive move during the day.

Global economy:

Brazil's central bank will do "whatever is necessary" to control inflation, monetary policy director Gabriel Galipolo said on Thursday, adding that risks appeared to be to the upside of its 3% target. At an event in Belo Horizonte, Galipolo said minutes from the July 30-31 meeting of the central bank's rate-setting committee, known as Copom, made it clear that all policymakers are willing to do whatever it takes to control inflation, including those appointed by rate-hike averse President Luiz Inacio Lula da Silva. Galipolo was appointed by Lula and previously worked as Finance Minister Fernando Haddad's right hand as his executive-secretary. Chicago Federal Reserve Bank President Austan Goolsbee on Thursday reiterated that the central bank's job is not to respond to stock market routs or political considerations"The Fed's out of the election business. The Fed is in the economic business," Goolsbee said in an interview on Fox News, noting the Fed has been very clear about what economic data would motivate an interest-rate cut, a hold on policy, or even a rate hike. As for the recent stock-market rout, he said, "We're not in the business of responding to the stock market. We're in the business of maximizing employment and stabilizing prices."

Commodities:

Oil prices edged down in early Asian trading on Friday but were on track to gain more than 3% for the week as U.S. jobs data calmed demand concerns and fears of a widening Middle East conflict persisted. Gold prices edged lower on Wednesday as the U.S. dollar and Treasury yields firmed, while bets of a September rate cut from the Federal Reserve limited further losses.

Currency:

US dollar strengthens amid falling jobless claims, yen plunges as BOJ signals rate hike unlikely.

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