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Market Review

US:

Most U.S. stocks fell after an update on inflation hurt Wall Street’s hopes for lower interest rates. The S&P 500 fell 0.4% Tuesday, and the Dow Jones Industrial Average lost 1%.

Asia:

Asian stocks fell at the open on Wednesday after mixed US inflation data spurred traders to trim Federal Reserve interest rate-cut bets. The MSCI regional gauge dropped 0.4% with losses in Australia, Japan and South Korea.

India:

India's benchmark equity indices snapped four sessions of losses to close higher on Tuesday, led by gains in auto and financial stocks. Market is expected to open on a gap down note and likely to witness a sideways move during the day.

Global economy:

Dallas Federal Reserve President Lorie Logan said that the central bank will likely have to keep interest rates steady for longer to ensure inflation remains low, amid upside risks from Donald Trump’s trade tariffs. But Logan said that there remained a possibility that softer inflation and a weakening labour market will make the case for interest rate cuts fairly soon. My base case is that we’ll need to keep interest rates modestly restrictive for some time to complete the work of returning inflation sustainably to the 2 percent target, Logan said at the World Affairs Council of San Antonio.

A Mexican regulator slapped three financial institutions with administrative fines but the government reiterated that despite U.S. sanctions on them for alleged money laundering, there was no conclusive evidence of wrongdoing. Last month, the U.S. prohibited certain transactions with Mexico’s CIBanco, Intercam Banco and Vector Casa de Bolsa as part of its fentanyl sanctions. If we have conclusive information that proves illicit activities of these three financial institutions, we will act with the full force of the law, the finance ministry said in a statement.

Commodities:

Oil prices rose on Wednesday on expectations of steady demand in the U.S. and China, the world's two largest oil users, amid an improving economic outlook.

Gold prices edged higher on Wednesday, as investors digested economic data showing an increase in U.S. consumer prices last month and awaited further clarity on U.S. President Donald Trump's trade policy.

Currency:

The U.S. dollar rose alongside Treasury yields on Wednesday, which in turn kept pressure on the yen after the latest U.S. inflation report showed signs that President Donald Trump's tariffs were beginning to feed into prices.

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