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Market Review

US: US PCE index, Federal Reserve's preferred inflation gauge, is scheduled for release later today, which will provide clues for the central bank's monetary policy going ahead. China's official PMI reading is due to be released on Friday, which will provide further insight into the economy struggling to reel out of the pandemic's effect. The S&P 500 Index and Nasdaq Composite fell by 0.17% and 0.55%, respectively on Wednesday. The Dow Jones Industrial Average fell by 0.06%.

Asia: Share indices in Asia-Pacific region were trading lower in early trade on Thursday, taking cues from overnight losses on Wall Street as market participants await for U.S. Personal Consumption Expenditure and China's PMI data.

India: India's benchmark equity indices closed over 1% lower on Wednesday as Reliance Industries Ltd. and bank stocks dragged the most. The NSE Nifty 50 ended 247.20 points or 1.11%, down at 21,951.15 and the S&P BSE Sensex closed 790.34 points or 1.08%, lower at 72,304.88. Market is expected to open on a flattish note and likely to witness range bound move during the day

Global Economy: Japan's January factory output fell at the fastest pace since May 2020, as a production downturn in motor vehicles adds to concerns about the fragility of an economy that slipped into recession late last year. Industrial output fell 7.5% in January from the previous month, data from the Ministry of Economy, Trade and Industry (METI) showed. It was slightly worse than the median market forecast for a 7.3% drop, with output sliding in 14 of the 15 industries surveyed by METI. Australian retail sales rebounded in January after a slump the previous month, though annual growth in spending remained anaemic as high interest rates ate into spending power. Data from the Australian Bureau of Statistics (ABS) on Thursday showed retail sales rose 1.1% in January from December, when it dived a revised 2.1%.

Commodities: Gold prices held ground on Thursday as traders awaited the Federal Reserve's preferred inflation gauge due later in the day that could provide a fresh perspective into when the U.S. central bank could start cutting interest rates. Oil prices eased early on Thursday after a larger-than-expected build in U.S. crude stockpiles stoked worries about slow demand, while signs that U.S. interest rates could remain elevated for longer also added to pressure.

Currency: The US dollar was firm ahead of the key inflation data that could ruffle the interest rate outlook.

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