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Market Roundup 

The Indian rupee recovers lost growth by gaining 2 paise to 83.315 in Thursday’s trade. Lower imported commodity prices and the start of the monsoon season supported the gains in the rupee. However, the technical setup remains bullish for the USDINR with higher side resistance at 83.60 and support at 83.01

China’s official manufacturing and non-manufacturing PMIs missed estimates Friday, with the former falling back into contraction.

Focus will soon shift to European inflation data, as investors debate how much the European Central Bank can cut after it likely eases policy next week.

Forex:

* The dollar was steady while US Treasuries extended Thursday’s gain in Asia, ahead of the release of the Fed’s favourite price gauge and following a report showing the US economy grew at a softer pace — as both spending and inflation were marked down. Treasury two-year yields dropped five basis points to 4.92%.

* The yen fluctuated after Japan’s industrial output in April expectedly fell, while the nation’s jobless rate was unchanged. 

* Federal Reserve Bank of New York President John Williams said he expects inflation to continue falling in the second half of this year, adding that elevated borrowing costs are restraining the economy.

* Atlanta Fed’s Raphael Bostic said the Fed needs to stay in a restrictive stance, watching service inflation for improvement

Equities:

* Asian stocks climbed Friday as the latest round of US economic data signalled momentum is slowing, boosting the case for the Federal Reserve to start cutting interest rates this year. It was another down day in the market, with big tech dragging down the major indexes and small-caps getting a bond-driven bounce. The S&P 500 slid 0.6% to 5,235 on Thursday, led by tech losses. 

Commodities:

* In commodities, profit-taking continued to weigh on prices across energy and metal markets. A weaker USD helped push precious metals higher.

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