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Market Review 

US:

U.S. stocks were lower for a second straight session on Tuesday as comments from U.S. President Donald Trump and Treasury Secretary Scott Bessent provided little clarity to the timeline for any trade deals.

Asia:

Asian stocks rose at the open and the dollar strengthened as China and the US plan to hold talks, spurring optimism trade tensions between the world’s two largest economies will ease.

India:

Benchmark indices Nifty and Sensex ended with cuts on May 6, snapping a two-day gaining streak, as 12 out of 13 sectoral indices traded lower. The broader market also felt the pinch and fell more than the frontline indices in the afternoon. Market is expected to open on a negative note and likely to witness range bound move during the day.

Global economy:

China’s central bank governor flagged int rate cuts and a liquidity injection into the banking system, among other monetary policy easing measures aimed at mitigating the impact of a trade war with US. The announcement comes shortly after U.S. and Chinese officials said U.S. Treasury Secr and chief trade negotiator will meet China’s top economic official He Lifeng in Switzerland this weekend for talks.

The U.S. and Britain have made good progress in negotiating a trade deal that would likely include lower tariff quotas on steel and autos, a UK official said, but the timing of a deal remains in doubt amid conflicting signals from U.S. Treasury Secretary Scott Bessent and President Trump.

President Trump announced on Tuesday the U.S. will stop bombing the Houthis in Yemen, saying that the Iran-aligned group had agreed to stop interrupting important shipping lanes in the Middle East. After Trump made the announcement, Oman said it had mediated the ceasefire deal, marking a major shift in Houthi policy since the start of Israel’s war in Gaza in October 2023. Under the agreement, neither the U.S. nor the Houthis would target the other, including U.S. vessels in the Red Sea and Bab al-Mandab Strait.

Commodities:

Oil prices rose on Wednesday on signs of weakening production in the U.S. and higher demand in Europe and China as buyers emerged after prices fell to new lows earlier in the week.

Gold prices fell on Wednesday as optimism over potential U.S.- China trade talks weakened demand for safe-haven assets, while investors braced for the Federal Reserve's policy meeting later in the day.

Currency:

The dollar index extend gains on Wednesday on confirmation of US and China holding dialogue.

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