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Market Review

US:

Wall Street saw one of its most brutal selling sessions overnight in over a month as rising deficit worries led to a spike in bond yields, which in turn hit sentiment around equities.

Asia:

Market opened lower Thursday, following Wall Street’s sharp losses driven by concerns over the US’s expanding budget deficit.

India:

The benchmark equity indices closed higher, breaking a three-session losing streak on Wednesday, amid volatility in the domestic stock markets. Market is expected to open on a negative note and likely to witness range bound move during the day.

Global economy

Japan’s manufacturing sector shrank for an eleventh straight month in May, purchasing managers index data showed on Thursday, as softer local and overseas orders, amid concerns over increased U.S. trade tariffs, dented output. The au Jibun bank flash manufacturing PMI read at 49 for the first three weeks of May as expected, although it improved slightly from the 48.7 seen in the prior month. A reading below 50 indicates contraction, with factory activity shrinking for an eleventh consecutive month.

British house prices have witnessed their quickest growth since December 2022, according to the latest data from the Office for National Statistics on Wednesday. The 12 months leading up to March saw an average annual increase of 6.4%, a significant rise from the 5.5% increase recorded in February. In addition, the ONS data revealed that private-sector rents across Britain in April were 7.4% higher than the same month in the previous year. This figure, however, represents a slowdown from March’s 7.7% annual rise, marking the weakest increase in almost two years.

Commodities:

Oil prices eased on Thursday as unexpected builds in U.S. crude and fuel inventories raised demand concerns, while investors stayed cautious, focusing on renewed Iran-U.S. nuclear talks. Gold prices rose on Thursday as investors leaned toward the safe-haven asset due to mounting concerns over the U.S. government's growing debt and a lukewarm demand for 20- year Treasury bonds, highlighting low appetite for U.S. assets.

Currency:

Dollar hit a two-week low against the yen amid fiscal concerns and a sluggish Treasury bond auction, as President Trump pushed for a contentious spending and tax-cut bill.

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