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Market Review

US:

US stock market ended lower on Friday, as investors parsed inflation data showing tariffs have started feeding into prices.

Asia:

Asian equities opened lower after a selloff in technology stocks hit Wall Street on Friday, with chip shares among the losers. Indexes in Japan and South Korea opened lower along with Australian stocks.

India:

On Friday, the Indian stock market ended lower for the third consecutive session as concerns over Trump tariffs and their economic fallout continued to weigh on market sentiment. Market is expected to open on a positive note and likely to witness positive move during the day.

Global economy:

A U.S. appeals court ruled on Friday that most of President Donald Trump’s global tariffs were illegal, finding he exceeded his authority when imposing them. A panel of judges in Washington upheld an earlier decision by the Court of International Trade that Trump wrongfully invoked an emergency law to issue the tariffs. Despite the ruling, the tariffs will remain in place for now as the case continues through the legal system. The ruling does not affect Trump’s first-term Section 232 tariffs on steel, aluminum, and autos, nor the Section 301 tariffs on Chinese goods, as these were imposed under different legal authorities.

China’s manufacturing sector contracted for a fifth straight month in August, official PMI data showed on Sunday, as U.S. tariff concerns still weighed on export orders, while domestic demand remained sluggish. Manufacturing PMI came in at 49.4, slightly higher than July’s 49.3 but below the market forecast of 49.5. The reading remained under the 50-point threshold that separates growth from contraction, pointing to continued weakness in the industrial sector. While the manufacturing sector had shown some signs of recovery in June, especially following a trade deal between the U.S. and China, recent readings indicated that activity still remained under pressure.

Commodities:

Oil prices traded in a tight range on Monday as worries about rising output and the impact of U.S. tariffs on demand offset supply disruptions stemming from intensified Russia-Ukraine airstrikes.

Gold prices rose to a more than four-month high on Monday, as increased expectations of a U.S. Federal Reserve interest rate cut this month lifted bullion’s allure.

Currency:

The dollar was adrift on Monday as markets looked ahead to a raft of U.S. labour market data this week that could determine the size of the Federal Reserve's expected rate cut later this month.

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