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Market Review

US:

On Friday, stocks on Wall Street ended higher, bouncing back from Monday's steep sell off as US Federal Reserve official expressed confidence in inflation slow down.

Asia:

Markets in Asia-Pacific region rose on Monday as traders await key data points from US to assess the health of the world's largest economy. Market participants also await India's CPI data due to be published later on Monday.

India: India's benchmark equity indices closed higher on Friday but logged a second consecutive weekly loss, weighed by various global and Indian macro cues, including the yen carry trade, US recession fears, and the RBI governor's hawkish commentary during policy. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

Multinational groups from Volkswagen to AB InBev and L’Oreal have sounded the alarm about demand in China, with the effects of a slowing economy exacerbated by shrinking appetite for foreign brands and intensifying domestic competition. In results last week WPP, the London-listed advertising giant, cited a near one-quarter drop in Chinese sales in the past three months, a poor outlook in the country and signs of consumer caution. The number of new unemployment benefit claims in the US has fallen more than expected, easing concerns about labour market stability. Initial claims dropped by 17,000 to a seasonally-adjusted 233,000 for the week ending 3 August, marking the largest decline in about 11 monthsThe news follows last week's worse-than-expected US job data, which saw global stock markets fall. The jump in jobless claims was attributed to factors including people being unable to work because of Hurricane Beryl

Commodities: Oil prices steadied in Asian trade on Monday, retaining last week’s rebound as media reports suggested that an Iranian strike on Israel was likely to happen in the coming days. Gold prices held steady on Monday, with investors awaiting key U.S. inflation data due later this week to gauge the size of the Federal Reserve's likely interest rate cut next month.

Currency: The yen was a tad softer against the dollar in trading thinned by a Japanese holiday on Monday, with market participants still ambivalent about the odds of a big Fed rate cut next month.

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