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Market Review

US:

US stocks ended higher as traders assessed the country's producer price index which rose slightly above estimates.

Asia:

Asian indices were mixed in the early trade. Japan's Nikkei was 0.4% lower when Australia's S&P ASX 200 was 0.4% up and South Korea's Kospi traded flat.

India:

India's benchmark equity indices ended at fresh closing highs on Thursday as markets rose sharply in the last hour of trade, led by rallies in metal, auto, and banking stocks. Market is expected to open gap up and likely to witness range bound move during the day.

Global economy:

A tight U.S. presidential election race has unnerved investors in emerging markets, who fear a return of former President Donald Trump to the White House could hurt emerging markets just as they were poised to shine. The prospect of lower interest rates in the United States has brightened the outlook for EM assets, which have lagged their developed peers in the last few years. But analysts are now concerned that under a second Trump presidency trade barriers could be buttressed, spurring a rebound in inflation and thereby interest rates, lifting the dollar and eventually weighing on emerging markets again. Interest rate cuts from major central banks are well underway, with the European Central Bank on Thursday delivering its second quarter-point cut of the year. Half of the 10 big developed market central banks tracked by Reuters have now started easing policy, and the U.S. Federal Reserve is likely to join the club next week. The Swiss National Bank, the first among Western peers to lower borrowing costs in March, cut rates again in June to 1.25%. The Bank of Canada implemented its third consecutive cut on Sept. 4 to 4.25% and another 25 bps reduction in October is almost fully priced. Sweden's Riksbank, which started cutting rates in May after its successive hikes crushed inflation but weakened the economy, is tipped to lower borrowing costs by at least another 25 bps on Sept. 25

Commodities:

Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana. Gold prices hovered near an all-time high on Friday, and poised for a weekly gain due to a weaker dollar, while investors focused on U.S. economic data that could offer additional insights into the Federal Reserve's policy decision.

Currency:

The dollar dropped, heading back towards the weakest level this year. The dollar index, which measures the currency against the yen and five other major rivals, dropped to a one-week trough.

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