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Market Review

US:

The S&P 500 gave up earlier gains and closed lower on Wednesday after Fed Reserve Chair Jerome Powell signaled the central bank isn’t ready to cut rates, as it assesses the impact of President Trump’s higher tariffs on the inflation picture.

Asia:

Asia-Pacific markets traded mixed Thursday as investors assessed the U.S.′ blanket 15% tariffs on imports from South Korea and awaited details on the Bank of Japan’s policy decision.

India:

India's benchmark equity indices ended higher for a second consecutive session on Wednesday as better-thanexpected earnings pulled up heavyweight Larsen & Toubro Ltd. to help offset decline in Tata Motors Ltd. and Reliance Industries Ltd. Market is expected to open on a gap down note and likely to witness range bound move during the day.

Global economy:

Australia’s retail sales surged past expectations in June, boosted by strong discretionary spending amid mid-year sales and discounts, with household goods leading the rise. Retail sales rose 1.2% MoM in June from a revised 0.5% growth in the prior month, and came in sharply above expectations of a 0.4% growth. ABS also released quarterly retail sales volumes, which rose 0.3% in the June quarter from nearly flat levels in the prior quarter. There were increases in all industries, led by household goods retailing, while food-related spending also rebounded in June.

China’s manufacturing sector shrank more than expected in July, as weather-related disruptions largely offset improving trade ties with the US. Manufacturing PMI read 49.3 in July, compared to expectations that it would remain unchanged at 49.7. A reading below 50 indicates contraction, with the sector now contracting for a fourth consecutive month. Slowdown was in part due to seasonal trends and weather-related disruptions in activity.

Commodities:

Oil prices gained for a fourth straight day on Thursday, as investors worried about supply shortages amid U.S. President Donald Trump's push for a swift resolution to the war in Ukraine and threats of tariffs on countries buying Russian oil.

Gold prices rebounded on Thursday from a one-month low hit in the previous session, as trade uncertainty stemming from fresh U.S. tariff announcements lifted bullion demand and investors bought on dips despite reduced expectations of a U.S. rate cut.

Currency:

The dollar flirted with a two-month peak on Thursday after Federal Reserve Chair Jerome Powell stuck to his patient approach on rates in a closely watched policy decision and offered little insight on when they could be lowered.

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