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Market Review

US:

Stocks closed higher on Tuesday as investors moved past worries of a potential U.S. government shutdown and logged an unusually strong September.

Asia:

Asian shares were mixed as investors remained cautious ahead of a potential US government shutdown.

India:

The Indian equity market ended negative on Tuesday, recording their eighth successive loss led by selling pressure in consumer, realty and IT stocks, though auto, banks and metals capped the declines. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global Economy:

The number of job openings in the U.S. edged higher by more than anticipated in August. Job openings, a proxy for worker demand, moved up to 7.227 mn last month, compared to 7.208 mn in July and economists’ forecasts of 7.190 mn.

US crude inventory drops, but less than forecasted, the actual decrease in crude inventories was reported at -3.674 mn barrels. However, this decrease was less significant than analysts had predicted. The drop in crude inventories, though signaling a demand, was not as strong as the market had anticipated. This smaller-than-expected decrease in the crude stock suggests a weaker demand, a factor which is traditionally bearish for crude prices

Britain’s economy slowed in the Q2CY25 after a strong start to the year, highlighting the challenges facing finance minister Rachel Reeves as she prepares for November’s annual budget. British GDP growth slowed to 0.3% in April to June, from 0.7% in Q1CY25, unrevised from initial ONS estimates and in line with economists’ Annual growth for 2024 was unrevised at 1.1%, although changes to the quarterly path of growth meant GDP growth for the year to the end of Jun’25 was revised up to 1.4% from 1.2%.

Commodities:

Oil prices steadied after two days of losses, as investors weighed potential OPEC+ plans for a larger output hike against shrinking U.S. crude inventories. Brent and WTI futures saw marginal gains. OPEC+ is reportedly considering raising production by up to 500,000 bpd in November, though OPEC termed such reports misleading. U.S.

Gold prices edged higher, nearing record levels. A potential US government shutdown boosted demand for safe assets. Recent US labor data indicated a softening market. This reinforced expectations for Federal Reserve rate reductions.

Currency:

The US dollar is near a one-week low. A government shutdown looms, potentially delaying jobs data. This delay impacts Federal Reserve interest rate cut expectations.

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