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Market Review

US:

Stocks rose on Thursday as traders anticipated that the latest reading of a key consumer inflation gauge won’t stand in the way of the Federal Reserve lowering its benchmark interest rate next week

Asia:

Asian share markets followed Wall Street higher on Friday as the growing prospect of several more U.S. rate cuts promised to lower borrowing costs globally, a relief to stressed bond markets and a drag on the dollar.

India:

The benchmark Indian equity indices settled on a positive note on Thursday, buoyed by gains in banking, and Oil & gas related stocks. Market is expected to open on a positive note and likely to witness positive move during the day.

Global:

Headline U.S. consumer price growth accelerated in August, but the uptick was largely in line with estimates, potentially further bolstering wagers that the Federal Reserve will slash interest rates at its upcoming policy gathering next week. The consumer price index came in at 2.9% in the 12 months to August, compared to 2.7% in July and matching economists’ expectations. Month-on-month, the inflation gauge stood at 0.4%, faster than 0.2% in the prior month and slightly above forecasts of 0.3%. A 0.4% jump in shelter costs was the largest contributor to the monthly increase.

The Federal Budget Balance, a critical measure of the government’s financial health, has reported a deepening deficit, amplifying concerns over the nation’s fiscal stability. The actual figure for the reported month stands at -$345.0 bn, indicating a growing chasm between the federal government’s income and expenditure. This figure is notably worse than the forecasted budget deficit of -$305.7 bn, missing the mark by a significant $39.3 bn.

The Federal Budget Balance, a critical measure of the government’s financial health, has reported a deepening deficit, amplifying concerns over the nation’s fiscal stability. The actual figure for the reported month stands at -$345.0 bn, indicating a growing chasm between the federal government’s income and expenditure. This figure is notably worse than the forecasted budget deficit of -$305.7 bn, missing the mark by a significant $39.3 bn.

Commodities:

Oil prices edged lower on Friday after big falls in the last session over concerns about possible softening of U.S. demand and broad oversupply that offset worry about supply disruption from conflict in the Middle East and war in Ukraine.

Gold prices increased on Friday, marking a potential fourth straight week of gains. This rise is due to concerns about the U.S. labour market, overshadowing inflation worries. The Federal Reserve is expected to cut interest rates next week. Weakening Treasury yields and a declining dollar also support gold.

Currency:

The dollar remained under pressure on Friday as a surge in U.S. jobless claims and a modest tick up in inflation kept investors zeroed in on likely Federal Reserve interest rate cuts next week and beyond

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