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Market Review

US: Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally

Asia: China led Asia's stock markets higher on Wednesday as investors cheered the approval of a trillion-yuan sovereign bond issue as a harbinger of stimulus, while the Aussie dollar hit a two-week high as hotter-than-expected inflation lifted rate forecasts.

India: The domestic equity indices witnessed a sharp selloff on Monday, extending losses for the fourth-straight session, amid heightened geopolitical tensions, mixed quarterly earnings and spike in US treasury yields.

The market is expected to open on a positive note and likely to witness sideways move during the day.

Global Economy: China's top parliament body has approved a 1 trillion yuan ($137 billion) sovereign bond issue and passed a bill to allow local governments to frontload part of their 2024 bond quotas, state media said on Tuesday, in a move to support the economy. Funds raised from the new sovereign bonds will support the rebuilding of disaster-hit areas in the country and improve urban drainage prevention infrastructure to boost China's ability to withstand natural disasters. That will widen the country's 2023 budget deficit to around 3.8% of gross domestic product from a previously set 3%. Australian inflation was surprisingly strong in the third quarter amid broad-based and stubborn cost pressures, a headache for policymakers that added greatly to the risk of a rise in interest rates as early as next month. The consumer price index (CPI) rose 1.2% in the third quarter, above market forecasts of 1.1% and up from a 0.8% increase the previous quarter

Commodities: Gold prices climbed on Wednesday on softer U.S. Treasury yields, but lacked impetus to rise further as bullion's safe-haven demand showed signs of fatigue after global leaders sought to prevent the Israel-Hamas war from spreading. Oil prices fell slightly on Wednesday, extending sharp losses after a swathe of weak economic readings raised concerns over demand, although other data showed a sustained decline in U.S. inventories.

Currency: The dollar was on the front foot on Wednesday, drawing support from yet another resilient U.S. economic data reading, while the euro struggled to make headway on the back of a darkening growth outlook in the bloc.

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