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Market Review

US:

U.S. stock index futures fell in evening deals on Tuesday, with technology stocks seeing renewed weakness after underwhelming second-quarter earnings from heavyweights Alphabet and Tesla.

Asia:

Asian equities declined, following an unimpressive start to the earnings reports from the “Magnificent Seven” megacap technology companies.

India

The domestic market indices ended marginally lower after the Union Budget 2024 was presented in the Lok Sabha. Market is expected to open on a negative note and likely to witness range bound move during the day.

Global Economy:

Japanese manufacturing activity unexpectedly shrank in July, preliminary purchasing managers index, while the services sector rebounded on robust demand. Singapore's key consumer price gauge rose 2.9% in June from a year earlier. The core inflation rate, which excludes private road transport and accommodation costs, was a notch lower than the 3.0% forecast in a Reuters poll of economists and compared with 3.1% seen in April and May.The central bank is widely expected to keep its monetary policy settings unchanged at a review on Friday given concerns about potential inflationary risks from geopolitical friction.Inflation in the Asian financial hub has been sticky. While it has cooled from a peak of 5.5% in early 2023, it had held above 3% until the June figure. Monetary Authority of Singapore (MAS) head Chia Der Jiun said last week that he expects core inflation to stay on its disinflation path and ease more significantly in Q4 this year.

Commodities

Gold prices struggled for momentum on Wednesday, with investors awaiting U.S. economic data that could influence the Federal Reserve's rate-cut timeline. Oil prices rose in Asian trade on Wednesday, recovering mildly from recent losses as expectations of tight near-term markets were furthered by industry data showing a draw in U.S. inventories.

Currency

The U.S. dollar was broadly firm, with traders watching out for an inflation reading on Friday and Federal Reserve meeting next week. The Bank of Japan is also due to meet next week, where a 10 basis point hike is priced at a 44% chance.

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