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Market Review

US:

US major indexes finished higher on Thursday after softerthan-expected US inflation strengthened hopes of upcoming Federal Reserve interest-rate cuts, while a strong outlook from chipmaker Micron boosted optimism around AI-driven demand.

Asia:

Asian equities advanced on Friday as cooling US inflation data strengthened expectations of Federal Reserve rate cuts and easing tech concerns lifted sentiment on Wall Street.

India:

Indian equity benchmarks struggled for direction on Thursday before closing lower for a fourth straight session, as lack of fresh triggers kept investors cautious, while gains in information technology stocks capped broader market losses. Market is expected to open on a positive note and likely to witness positive move during the day.

Global economy:

The Bank of Japan is set to raise interest rates on Friday to a three-decade high and signal its readiness for further hikes beyond next year, underscoring its conviction that sustained wage gains will keep inflation around its 2% target. While a hike still keeps its policy rate low by global standards, it would be another landmark step in Governor Kazuo Ueda’s efforts to normalise monetary policy in a country long accustomed to unconventional easing and near-zero rates.

After celebrating Donald Trump’s second presidential term by swilling cocktails and partying to Snoop Dogg at a preinauguration event in January, the crypto industry went on to notch major legislative and regulatory victories this year

The Bank of Mexico lowered its benchmark interest rate by 25bps on Thursday, signaling confidence that inflation is still on track to return to target by late next year despite an increase in near-term inflation risks. The reduction, which was widely expected by analysts, brings the rate to 7.00%, its lowest level since Apr’22.

Commodities:

Oil prices fell in early trading on Friday and were set to close lower for a second straight week, as rising prospects of a RussiaUkraine peace deal offset concerns over supply disruptions from a blockade of Venezuelan oil tankers.

Gold fell on Friday on lower-than-expected U.S. inflation figures, reducing bullion's appeal as a hedge against inflation, while a firmer dollar also put pressure on prices.

Currency:

The yen was pinned near recent lows on Friday while traders waited to see whether the Bank of Japan can convince the market it can keep hiking interest rates into next year, while the euro slipped a bit after the central bank didn't hint at rate hikes.

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