Before Market Opens: 9 things to know at 9 am on June 13, 2022

US stocks posted their biggest weekly percentage declines since January and ended sharply lower on Friday as a steeper-than-expected rise in US consumer prices in May fuelled fears of more aggressive interest rate hikes by the Federal Reserve. The Dow Jones Industrial Average fell 880 points, or 2.73 percent, to 31,392.79; the S&P 500 lost 116.96 points, or 2.91 percent, to 3,900.86; and the Nasdaq Composite dropped 414.20 points, or 3.52 percent, to 11,340.02.

Shares in Asia slipped on Monday morning as investors look ahead to this week’s major Chinese economic data releases as well as a closely watched interest rate decision by the US Federal Reserve. The Nikkei 225 in Japan dropped 2.4% as shares of conglomerate SoftBank Group fell 4.58%. The Topix index shed 1.8%. South Korea’s Kospi slipped 2%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.53% lower.

At 8:20 am, the SGX Nifty was trading 316 points or 1.95 percent lower at 15,891 indicating a gap-down opening for the Indian markets.

Indian equity benchmarks fell on Friday amid weakness across sectors, suffering their worst single-day fall in three weeks, as investors globally feared aggressive hikes in COVID-era interest rates will hamper economic growth. The Sensex dropped 1,016.8 points or 1.8 percent to end at 54,303.4 and the Nifty50 settled at 16,201.8, down 276.3 points or 1.7 percent from its previous close.

Oil prices slipped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and economic growth further depressed the market. Brent crude futures fell $2.06, or 1.7%, to $119.95 a barrel by 0033 GMT while US West Texas Intermediate crude was at $118.54 a barrel, down $2.13, or 1.8%.

US inflation surged 8.6 per cent last month from a year earlier, faster than April's year-over-year increase of 8.3 per cent the Labor Department said Friday. The new inflation figure, the highest since 1981, will heighten pressure on the Federal Reserve to continue raising interest rates aggressively.

Gold future contract for August expiry on Multi Commodity Exchange (MCX) ended at ₹51,694 per 10 gm, logging ₹689 gain in single session. After trading range-bound for the entire week, spot gold price finally gave breakout at $1865 per ounce levels on closing basis.

The rupee ended 3 paise lower at 77.76 per dollar in the previous session on June 10. The rupee may see some weakness as the dollar and US Treasury yields grew stronger.

Foreign institutional investors (FIIs) have net sold ₹3,973.95 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers to the tune of ₹2,831.07 crore worth of shares on June 10, as per provisional data available on the NSE.