Before Market Opens: Global cues weak as focus shifts to Fed meet; 9 things to know at 9 am on December 12, 2022

S&P 500 fell 0.73 percent and Dow Jones dropped 0.90 percent on December 9 as higher wholesale prices fanned fears that the US Fed may lift rates aggressively to beat inflation. Investors' focus now shifts to releasing the US inflation print on December 13 and the US FOMC meet on December 14. 

Asian shares dipped on December 12 while the dollar drifted higher at the start of a hectic week, as markets awaited a flurry of rate decisions from the US Federal Reserve, the European Central Bank and others. Also, the US consumer inflation report on December 13 will set the tone for markets for the week, reported Reuters. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 percent after rising 1.3 percent last week. Japan's Nikkei dipped 0.5 percent, while South Korea dropped 0.7 percent. S&P 500 futures slipped 0.2 percent, while Nasdaq futures fell 0.3 percent.

SGX Nifty (Nifty futures on Singapore Stock Exchange) indicated a negative start for the domestic market on December 12. At 8 am, the SGX Nifty was trading 74 points, or 0.40 percent, lower at 18,517.

The domestic market witnessed a widespread selloff on December 9, led by IT and oil & gas counters. Sensex closed 389 points, or 0.62 percent, lower at 62,181.67 while the Nifty50 settled with a loss of 113 points, or 0.61 percent, at 18,496.60. The BSE Midcap index fell 0.45 percent while the Smallcap index dropped one percent.

Oil prices rebounded on hopes of a healthy demand amid easing of Covid curbs in China. However, gains were capped due to concerns over a looming recession in the US. West Texas Intermediate climbed to trade near the $72 a barrel level while the Brent Crude traded near the $77 a barrel level.

Gold prices inched lower on December 12, dragged down by a firmer dollar, with investors awaiting key US inflation data and Federal Reserve's rate-hike verdict due this week, reported Reuters.

The rupee rose 15 paise to close at 82.28 per dollar in the previous session on December 9. Meanwhile, the dollar moved up on Monday as markets awaited rate decisions from the US Federal Reserve, the European Central Bank and other central banks.

US Treasury Secretary Janet Yellen on December 11 forecast a substantial reduction in US inflation in 2023, barring an unexpected shock. Yellen's comment came days before the Fed is expected to slow the aggressive pace of interest rate increases it has pursued this year, reported Reuters.

Foreign portfolio investors (FPI) sold Indian shares worth ₹158.01 crore on NSE, BSE and MSEI in the previous session on December 9. Conversely, domestic institutional investors (DIIs) bought Indian shares worth ₹501.63 crore, data from NSE showed.