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Market Review

US:

U.S. stocks closed marginally lower on Friday as investors balanced concerns over slowing economic growth with optimism about potential Federal Reserve rate cuts after August jobs data showed a sharp slowdown.

Asia:

Most Asian stocks rose on Monday after soft U.S. payrolls data ramped up bets on a September interest rate cut, with Japanese stocks leading gains on strong economic growth data, even after Prime Minister Shigeru Ishiba unexpectedly resigned.

India:

The Indian market closed flat on Friday as profit booking in consumer and IT stocks offset gains in auto shares following the announcement of sweeping tax cut proposals under the “GST 2.0” overhaul.Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

Japan’s economy grew more than expected in the April-June qtr, boosted by strong export volumes and steady growth in private consumption, which offset sluggish business spending. GDP grew 0.5% QoQ, higher than expectations of 0.3%. GDP surged 2.2% YoY, well above initial estimates of 1% while also accelerating sharply from the prior quarter. Japanese exports were also seen remaining steady despite increased challenges from U.S. trade tariffs

British employers offered the lowest pay settlements in more than three-and-a-half years in July and hiring continued to slow - albeit by less than in previous months. The figures are likely to reassure some Bank of England policymakers that an upsurge in inflation will prove temporary but also highlight businesses’ fears of another round of tax rises in finance minister Rachel Reeves’ November 26 budget. The median pay settlement in the three months to July dropped to 3.0% from 3.4% in the three months to June, its lowest since December 2021.

Commodities:

Oil prices rose in early Monday trade, recouping part of last week’s losses after OPEC+ agreed to slow the pace of output increases from October amid expectations of softer global demand.

Gold prices held near a record-high while U.S. Treasury yields hovered close to five-month lows after data showed the world's largest economy created far fewer jobs than expected in August, with markets factoring in chances of a jumbo rate cut.

Currency:

The yen weakened broadly on Monday after the resignation of Japanese Prime Minister Shigeru Ishiba, while the dollar struggled to recover from losses sparked by a soft U.S. jobs report that reinforced expectations of a Federal Reserve rate cut this month.

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