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Market Review

US: US stocks ended with little gains on Tuesday as the FOMC started its two-day policy meeting. Traders are still divided about the quantum of rate cut from the US rate-setting panel.

Asia: Asia-Pacific share indices rose early Wednesday as traders await the outcome of the US Federal Open Market Committee's policy decision, due to be released later today.

India: Benchmark Sensex rose by nearly 91 points to close at a fresh lifetime high while Nifty settled above the 25,400 level for the first time supported by firm global trends ahead of the much-awaited U.S. Fed's decision on interest rates.

Market is expected to open on a flattish note and likely to witness sideways move during the day.

Global economy: Japan’s exports rose at a much slower-thanexpected pace in August and shipment volumes continued to slide. Total exports rose 5.6% year-on-year in August, up for a ninth straight month, official data showed, less than a median market forecast for a 10% increase and following a 10.3% rise in July. Overall shipment volumes fell 2.7% last month from the year-ago period, the seventh consecutive month of declines. Imports grew 2.3% in August from a year earlier, As a result, the trade balance stood at a deficit of 695.3 bn yen ($4.90 bn), compared with the forecast of a deficit of 1.38 trn yen

Canada's annual inflation rate reached the central bank's 2% target in August, fuelling hopes for a 50bps interest rate cut by the country's central bank next month. The consumer price index posted its smallest rate of increase since February 2021 and the closely watched core price measures also cooled to their lowest levels in 40 months. Consumer prices fell 0.2% on a month-on-month basis.

Commodities: Gold prices remained steady as the market anticipated a Federal Reserve interest rate cut, the first in over four years. Spot gold slightly increased to $2,572.11 per ounce, while U.S. gold futures rose to $2,598.30. The Fed's decision is expected later today amid geopolitical tensions involving Hezbollah and Israel. Oil prices steadied on Wednesday after recent gains, as investors await the U.S. Federal Reserve's anticipated interest rate cut. Prices were supported by potential Middle East violence and U.S. supply disruptions post-Hurricane Francine. The market also expects U.S. oil purchases for the Strategic Petroleum Reserve.

Currency: The dollar steadied on Wednesday as stronger-thanexpected U.S. retail sales led traders to slightly reduce bets on an outsized interest rate cut by the Federal Reserve. The Fed is expected to make its first interest rate cut in over four years, with the size and tone of the cut influencing future market moves.

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