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US: The US stock market ended mixed on Wednesday after a moderate increase in inflation in August raised expectations that the US Federal Reserve will leave interest rates unchanged in its September policy.

Asia: Asian stocks rose on Thursday, as traders figured a small upside surprise for U.S. inflation was unlikely to push up interest rates and turned their focus to a European Central Bank meeting later in the session

India: On Wednesday, the domestic equity indices ended higher due to upbeat macroeconomic data amid global signals being subdued. The benchmark Nifty ended above 20,000-mark for the first time ever. Market is expected to open gap up and likely to witness positive move during the day.

Global Economy: US inflation accelerated in August for the second-straight month, pushed up by rising gas prices. However, core inflation, which strips out volatile food and energy prices, continued to slowdown. The CPI rose 3.7% in August from a year earlier, up from July’s 3.2% rise. That’s slightly hotter than the 3.6% annual rate economists were expecting. On a month-tomonth basis, prices rose 0.6% in August, compared with a 0.2% gain in July. However, core inflation slowed to 4.3% from 4.7% for the 12 months ending in August, its slowest pace since September 2021, and an indication that the Federal Reserve’s 11 rate hikes are working their way through the economy. The U.S. Energy Department has talked to oil producers and refiners to ensure stable fuel supplies at a time of rising gasoline prices and to assess inventory levels as well as know any planned shutdowns of refineries, after Saudi Arabia and Russia extended voluntary oil output cuts to the end of the year. Rising gasoline prices were largely behind the largest increase in U.S. consumer prices in 14 months in August. Gasoline prices jumped 10.6% in August after climbing 0.2% in July, accounting for more than half the increase in the Consumer Price Index.

Commodities: Gold prices firmed on Thursday as the US dollar and Treasury yields weakened after the US inflation data cemented the case for a Federal Reserve rate pause next week, although bullion was not far from a near three-week lows seen in the previous session. Oil prices edged higher on Thursday, after dipping slightly in the previous session, as markets refocused on expectations of tight crude supply for the rest of 2023.

Currency: The U.S. dollar hovered above a three-month low to the euro on Thursday as attention turned to the European Central Bank's rate-setting meeting later in the day, after U.S. inflation data failed to alter views for a Federal Reserve pause next week.

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