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Market Review

US:

Most US indices ended Thursday with marginal fall as impact of the Federal Reserve's hawkish outlook for 2025 settles.

Asia:

Indices in the Asia pacific region were mixed before the People's Bank of China's loan prime rate decision.

India:

On Thursday, the benchmark equity indices recorded the lowest closing since Nov. 28, tracking global negative sentiment following hawkish commentary by the US Federal Reserve. Market is expected to open on a gap down note and likely to witness range bound move during the day.

Global economy:

Japanese consumer price index inflation grew slightly more than expected in November, pointing to a sustained uptick in inflation that could push the Bank of Japan into raising interest rates early in 2025. National core CPI, which excludes volatile fresh food items, grew 2.7% year-on-year in November, government data showed on Friday. The reading was above expectations of 2.6% and picked up from the 2.3% seen in the prior month.

Germany's federal and state governments' tax revenue rose 9.0% in November compared with the same month last year, the finance ministry said in its monthly report on Friday, reaching a total of 61.0 billion euros ($63.43 billion).Forwardlooking economic indicators continue to reflect a difficult economic situation, which is starting to leave its markoin the labour market, the report said. In its latest forecast, the German government expects the economy to contract by 0.2% in 2024, which would make it the only member of the Group of Seven major industrial democracies to post shrinking output for the second year running.

Commodities:

Oil prices fell in Asian trade on Friday and were headed for a weekly loss as hawkish signals from the Federal Reserve and persistent concerns over slowing demand weighed.

Gold prices were poised for a weekly fall on Friday after the Federal Reserve's verdict on its monetary policy-easing cycle noted a slowdown in cuts, while market focus shifted to the U.S. Personal Consumption Expenditure data due later in the day.

Currency:

The dollar surged to a two-year high, fueled by hawkish U.S. interest rate projections, while the yen plummeted to a new low. Several currencies, including the South Korean won and Canadian dollar, hit multi-year lows. The Bank of Japan's decision to hold rates steady further weakened the yen, despite rising inflation.

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