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Market Review

US:

US stocks were trading close to their all-time highs, with the S&P 500 rising for a sixth straight day on the back of Nvidia Corp. This comes as traders view Powell's statement as balanced. This also reinforced the speculation that the Fed will be able to cut rates this year.

Asia:

Asia-Pacific markets were trading on a mixed note early Wednesday as investors assessed latest comments from the US Federal Reserve Chair Jerome Powell before the Senate Banking committee.

India:

India's equity benchmark indices rebounded sharply to end at a record high on Tuesday as shares of Maruti Suzuki India Ltd. and ICICI Bank Ltd. led gains. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

The U.S. is no longer an overheated economy with a job market that has cooled from its pandemic-era extremes and in many ways is back where it was before the health crisis, Fed Chair Jerome Powell said in remarks to Congress that suggested the case for interest rate cuts is becoming stronger. We are well aware that we now face two-sided risks, and can no longer focus solely on inflation, Powell told the Senate Banking Committee on Tuesday. The labor market appears to be fully back in balance. Powell told lawmakers that he did not want to be sending any signals about the timing of any future actions on interest rates, a stance consistent with the chair's recent efforts to focus attention more on the evolution of economic. Banks increasingly use third-party tech companies, such as Microsoft, Amazon and Google, for cloud computing to run key services, raising concerns among regulators about the impact on the financial sector if a provider used by many banks went down. Ongoing digitalisation has led to rapid adoption of innovative approaches in the banking sector, the Basel Committee said in a statement. As a result, banks have become increasingly reliant on third parties for services that they had not previously undertaken.

Commodities:

Oil prices rebounded on Wednesday following three days of declines after an industry report showed U.S. crude and fuel stockpiles fell last week, indicating steady demand, and the outlook for interest rate cuts improved. Gold prices held steady on Wednesday, with investors looking towards key U.S. inflation data that could shed more light on the Federal Reserve's interest rates trajectory.

Currency:

The dollar index climbed toward 105.2 on Wednesday, rising for the third straight session as Federal Reserve Chair Jerome Powell reiterated the central bank’s cautious approach on interest rate cuts.

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