Before Market Opens: 9 things to know at 9 am on August 11, 2022

Wall Street equities rallied and the dollar tumbled after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise interest rates at a slower pace than previously expected. The Dow Jones Industrial Average ended the session up 535.1 points, or 1.63%, at 33,309.51 while the S&P 500 rose 87.77 points, or 2.13%, to 4,210.24 and the Nasdaq Composite added 360.88 points, or 2.89%, to finish at 12,854.81.

Asia-Pacific markets climbed on Thursday after a better-than-expected inflation report in the US sent stocks spiraling higher. Australia’s S&P/ASX 200 rose 0.65%. The Kospi in South Korea was 1.17% higher and the Kosdaq jumped 1.6%. MSCI’s broadest index of Asia-Pacific shares outside of Japan increased 0.42%.

At 8:20 am, the SGX Nifty was trading 195 points or 1.1 percent higher at 17,742, indicating a gap up opening for the Indian markets.

Key equity indices the Sensex and the Nifty ended lacklustre amid mixed global cues as investors remained cautious ahead of the US inflation data. While the Sensex closed 0.06% lower at 58,817.29 while the Nifty settled 0.06% higher at 17,534.75. BSE Midcap and Smallcap indices closed 0.13% and 0.10% lower, respectively.

Oil prices rose on Wednesday, rebounding from losses early in the session, helped by encouraging figures on U.S. gasoline demand and as lower-than-expected US inflation data drove investors into riskier assets. Brent crude futures settled up $1.09, or 1.1%, to $97.40 a barrel, while US West Texas Intermediate crude futures gained $1.43, or 1.6%, to $91.93.

US consumer prices were unchanged in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for weary Americans who have watched inflation climb over the past two years. The Consumer Price Index (CPI) was flat last month after advancing 1.3% in June, the Labor Department said on Wednesday in a closely watched report that nevertheless showed underlying inflation pressures remain elevated as the Federal Reserve mulls whether to embrace another super-sized interest rate hike in September

Foreign institutional investors (FIIs) have net bought shares worth ₹1,061.88 crore, whereas domestic institutional investors (DIIs) net sold shares worth ₹768.45 crore on August 10, as per provisional data available on the NSE.

Gold prices slipped on Thursday, as the dollar and Treasury yields rebounded after comments from Federal Reserve officials pointed to aggressive interest rate hikes despite signs of slowing U.S. inflation, reported news agency Reuters.

The rupee ended 14 paise higher at 79.52 per dollar in the previous session amid a fall in crude oil prices. While weak demand keeps oil prices low, the anticipation of a supply glut further weighs on sentiment.