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Market Review

US:

All three major US stock indexes lost ground on Thursday, weighed by technology shares, as Treasury yields rose on easing recession fears and global central bank officials convened at the Jackson Hole Economic Symposium.

Asia:

Asian indices were mixed in early trade on Friday. Japan's Nikkei was 0.11% higher after the country's headline inflation was unchanged in July. South Korea's Kospi and S&P ASX 200 were trading 0.4% lower each as of 6:30 a.m. Investors now await the Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole summit.

India:

The benchmark equity indices pared some of their morning gains but still managed to close higher on Thursday, with the NSE Nifty 50 recording its best streak since the six sessions that ended on May 23. The Nifty closed 41.30 points or 0.17%, higher at 24,811.50, while the S&P BSE Sensex ended 0.18% or 147.89 points up at 81,053.19. Both indices recorded their highest closing since Aug. 1. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global Economy:

Japan's core inflation accelerated for a third straight month in July, but a slowdown in demand-driven price growth could complicate the central bank's decision on further interest hikes in coming months. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 2.7% yoy, slower than a 2.6% climb in June. It matched the median market forecast and put the inflation rate at or above the central bank's 2% target for the 28th straight month.

U.S. business activity fell to a 4-month low in August and firms continued to struggle to pass on higher prices to consumers, bolstering the likelihood that inflation will stay on a downward trend over the coming months. S&P Global said on Thursday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, edged down to 54.1 this month, a still healthy level among the highest measured over the past two years.

Commodities:

Gold prices inched higher on Friday, but were set for a weekly loss as investors looked forward to U.S. Federal Reserve Chair Jerome Powell's speech at Jackson Hole, Wyoming, for more cues on the scale of a likely September rate cut.

Oil prices were steady in early Asian trading on Friday, but were poised to end the week lower as downward revisions to U.S. employment data raised demand concerns and ceasefire talks in Gaza eased worries about supply disruptions.

Currency:

The US dollar was calm on Friday as traders braced for comments from Federal Reserve Chair Jerome Powell, while Bank of Japan (BOJ) Governor Kazuo Ueda aimed to soothe lingering market nerves after a surprise rate hike last month.

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