Indian markets are closed today due to the Diwali holiday, but there will be a special one-hour Muhurat trading session from 6.00 pm to 7.00 pm.
On Thursday, the benchmark indices, Sensex and Nifty, experienced a downturn for the second consecutive day, with declines of 0.7 percent and 0.6 percent, respectively. The rupee remained relatively stable, closing at 84.07 against the dollar, influenced by continuous foreign fund outflows and month-end dollar demand from importers.
This morning, Asian stock markets generally trended downward following the release of core PCE inflation data, indicating that the Federal Reserve is still facing challenges in its efforts to control inflation effectively. Sentiment was further impacted by mixed earnings reports from major U.S. technology companies, with Apple facing weaker-than-expected sales in China, although Amazon and Intel provided strong guidance.
Chinese markets showed minimal change, while Hong Kong's Hang Seng saw upward movement after a private survey revealed that China's factory activity expanded in October. Additionally, residential property sales in China increased in October, marking the first annual rise in 2024.
Japan's Nikkei index fell by over 2 percent, as the yen strengthened nearly 1 percent against the dollar on Thursday.
The U.S. dollar remained steady against major currencies ahead of the crucial U.S. jobs data release and the upcoming presidential election next week.
Gold prices saw a slight increase after a record drop the previous day. Oil prices rose by nearly 2 percent in Asian trading, following reports that Iran is preparing to launch an attack on Israel from Iraqi territory soon.
U.S. stocks plunged overnight as companies like Meta Platforms and Microsoft highlighted rising costs associated with artificial intelligence.
On the economic front, consumer spending exceeded expectations in September, and unemployment claims fell to a five-month low. Labor costs recorded their smallest increase in over three years in the third quarter, indicating a slowdown in wage growth. The PCE index, the Fed's preferred gauge of inflation, showed a slight decrease in the headline inflation rate to 2.1 percent year-over-year in September, while the core PCE inflation remained stable at 2.7 percent, versus the anticipated 2.6 percent. This fueled concerns that the Fed may lower rates more gradually than hoped.
The Nasdaq Composite, known for its technology focus, dropped 2.8 percent, the S&P 500 fell 1.9 percent, and the Dow Jones Industrial Average declined by 0.9 percent.
European stocks experienced a significant dip on Thursday, following data that indicated a larger-than-expected increase in Eurozone inflation.
The pan-European STOXX 600 fell by 1.2 percent. Meanwhile, Germany's DAX decreased by 0.9 percent, France's CAC 40 contracted by 1.1 percent, and the U.K.'s FTSE 100 slipped by 0.6 percent.