Before Market Opens: From US Fed to oil prices; 9 things to know at 9 am on August 24, 2022

Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming. The S&P 500 dipped after data showed private-sector business activity in the United States contracted for a second straight month in August, with particular softness in the services sector as demand weakened in the face of inflation and tighter financial conditions. The S&P 500 declined 0.22 percent to end the session at 4,128.73 points. The Nasdaq was unchanged at 12,381.30 points, while the Dow Jones Industrial Average declined 0.47 percent to 32,909.59 points.

Asia-Pacific shares rose on Wednesday after the Dow Jones Industrial Average and S&P 500 posted their third day of losses in the US. Japan’s Nikkei 225 gained 0.11 percent and the Topix index was slightly higher. The S&P/ASX 200 in Australia added 0.26 percent, while in South Korea, the Kospi climbed 0.5 percent and the Kosdaq advanced 0.83 percent.

At 8:20 am, the SGX Nifty was trading 66 points or 0.37 percent lower at 17,542, indicating a weak opening for the Indian markets.

Benchmark BSE Sensex and Nifty snapped their two-day losing streak to close nearly half a percent higher on Tuesday following gains in banking, metal and auto stocks. The 30-share BSE Sensex climbed 257.43 points or 0.44 percent to settle at 59,031.30. During the day, it hit a high of 59,199.11 and a low of 58,172.48. The broader NSE Nifty advanced 86.80 points or 0.50 percent to 17,577.50.

Oil prices surged by nearly 4 percent on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices in the case of returning Iranian crude and with the prospect of a drop in US inventories. The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg. Global benchmark Brent crude settled at $100.22 a barrel, up $3.74, or 3.9 percent. US West Texas Intermediate crude closed $3.38, or 3.7 percent, higher at $93.74 a barrel.

Goldman Sachs said on Tuesday it expects Federal Reserve Chair Jerome Powell to reiterate the case for slowing the pace of tightening, when he speaks at the annual Jackson Hole symposium on Friday. In a research note, Goldman economists said the message will be the same as laid out in his July news conference and in the minutes of the July Federal Open Market Committee meeting released last week.

Foreign institutional investors (FIIs) have net bought shares worth ₹563 crore, while domestic institutional investors (DIIs) net sold shares worth ₹215.20 crore on August 23, as per provisional data available on the NSE.

Gold held steady on Wednesday, with gains checked by an uptick in the US dollar, as market participants looked forward to a speech from Federal Reserve Chair Jerome Powell later this week, reported news agency Reuters.

The rupee ended flat at 79.86 per dollar in the previous session on August 23 amid gains in the domestic market and buying by foreign portfolio investors.