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Market Review

US:

US stocks bounced back following their worst week since April, shifting focus away from Joe Biden's decision to end his reelection campaign and turning attention to the kickoff of the tech earnings season.

Asia:

Asia-Pacific markets were trading higher on Tuesday, tracking overnight gains on Wall Street. The Nikkei 225 was trading 0.27% higher, and the S&P ASX 200 was 0.56% higher.

India:

The Indian benchmark equity indices closed lower for the second consecutive session on Monday as investors look forward to the Union Budget 2024–25 and more corporate earnings. Market is expected to open on a flattish note and likely to witness volatile move during the day.

Global economy:

China's central bank's decision to lower the collateral requirement for medium-term loans will alleviate the "asset famine" pressure on the bond market, state media reported on Tuesday, The People's Bank of China said on Monday it would lower the collateral requirement for the medium-term lending facility loan to increase the size of tradable bonds in the market. The move comes amid a record-long rally in China's sovereign bond markets that has prompted repeated central bank warnings and measures to put a floor under falling yields and prevent a market bubble. The balance of outstanding MLF loans now exceeded 7 trillion yuan ($962.44 billion), and the majority of the collateral pledged for the loans are government bonds and local government debt. The Bank of England said on Monday that banks should get ready to make greater use of its repo facilities as it sells down its government bond holdings, and that it plans a major expansion of its current six-month repo operation.Repos, or repurchase agreements, allow banks to temporarily swap bonds and other collateral they own for cash from the central bank, helping to keep market interest rates in line with the bank's policy rate.

Commodities:

Oil prices slipped for a third trading session on Tuesday as investors focused on the prospect of swelling oil supplies and weak demand, while showing little reaction to U.S. presidential campaign upheaval. Gold prices were steady on Tuesday as investors strapped in for U.S. economic data this week for clarity on the timeline for Federal Reserve's interest rate cut.

Currency:

The dollar weakened against the yen ahead of a policy meeting at the Bank of Japan next week, while the dollar index was flattish.

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