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Market Review

US:

US stock market ended higher on Friday on hopes of a bigger interest rate cut by the Federal Reserve this week.

Asia:

Asian markets opened mixed on Monday after the downbeat China’s economic data. Markets in Japan, China, South Korea and Indonesia are closed for holiday.

India:

On Friday, Indian stock market indices ended with minor losses amid profit booking at higher levels. Market is expected to open gap up and likely to witness positive move during the day.

Global economy:

Chinese industrial production and retail sales grew less than expected in Aug, while unemployment rose amid growing signs that economic conditions in the country were deteriorating. Industrial production rose 4.5% year-on-year in August. The reading was lower than expectations for a rise of 4.5%, and weakened from the 5.1% rise seen in July. The reading indicated that factory activity- which has been among the few bright spots in the Chinese economy- was under pressure from sluggish local demand and increased trade restrictions imposed by the West. Retail sales grew 2.1% in Aug, missing expectations of 2.5% and slowing from the 2.7% seen in the prior month. The reading showed a further deterioration in local demand, which has been the key driver of a persistent disinflationary trend in China over the past few years. China’s unemployment rate unexpectedly rose to 5.3% from 5.2%.

Peru's economy expanded for the fourth month in a row in July fueled by all sectors except agriculture, continuing the country's recovery following a recession last year.Manufacturing in July rose 10.91% while the mining and hydrocarbons sector expanded 3.10%, driven by metallic mining activity including growth in molybdenum concentrate and silver.The agriculture sector shrank 3.93%, due to smaller planted areas, weather issues and some early harvesting, which led to lower volumes of olives, dry beans, paprika, potatoes, cocoa and hard yellow corn.

Commodities: Gold prices rose slightly on Monday, supported by a weaker dollar and the possibility of a more aggressive rate cut by the U.S. Federal Reserve at its upcoming policy meeting. Oil prices edged up in early trade on Monday amid expectations of a U.S. interest rate cut this week, though gains were capped by U.S. supply resumptions following Hurricane Francine and weaker China data.

Currency: The Indian Rupee holds steady on Monday despite a weaker US Dollar. The decline in crude oil prices, strong foreign institutional inflows into the Indian stock market and the odds of an outsized Fed Reserve rate cut at its upcoming monetary policy meeting on Wednesday might support the INR.

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