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Market Review

US:

US benchmarks fell on Wednesday even as Federal Reserve officials lowered the interest rate by 25 bps while pointing to growing weakness in the labour market and elevated inflation.

Asia:

Asian benchmark indices zoomed on the back of US Federal Reserve's 25 bps rate cut, with the tech-heavy Hang Seng, in particular, trading with gains of up to 1.8%.

India:

Indian equity benchmark indices, rallied strongly in trade on Wednesday to end in green for the second consecutive day. The rally was driven by investors' active participation in IT, banking and automotive sectors, following constructive talks with US officials regarding the trade deal. Market is expected to open on a gap up note and likely to witness positive move during the day.

Global:

The Federal Reserve, goaded by the risk of rising unemployment, reduced interest rates on Wednesday for the first time since December and indicated more cuts would follow to halt any slide in a labor market already experiencing higher joblessness among Blacks, a declining workweek, and other signs of weakness. The decision moves in a direction called for by President Donald Trump, but falls far short of the steep cuts in borrowing costs that he has demanded - and which were apparently penciled into projections submitted by new Fed Governor Stephen Miran, who cast the only dissenting vote.

Australian employment unexpectedly fell in August as full-time positions dropped back after a sharp rise in the previous month, while the jobless rate held steady in a sign the labour market was slowly softening.The Australian dollar slipped 0.2% to $0.6637, while three-year bond futures rallied 3 ticks to 96.6.The mixed report failed to move the dial on the policy outlook as investors upheld bets that the Reserve Bank of Australia would likely skip a move in interest rates this month, with a cut in November about 75% priced.

Commodities:

Oil prices saw minimal change after the US Federal Reserve's interest rate cut. Further rate cuts are expected, potentially boosting oil demand. US crude stockpiles decreased, but distillate stockpiles increased.

Gold prices extended losses on Thursday due to an uptick in the dollar after the U.S. Federal Reserve cut interest rates by a quarter of a percentage point, as expected, and adopted a measured rhetoric on further policy easing.

Currency:

The U.S. dollar was steady early on Thursday following its plunge to a 3-1/2-year low and then forceful rebound as traders grappled with the ramifications of the Federal Reserve’s measured rhetoric on further interest rate cuts

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