Before Market Opens: US inflation cools, stocks get hotter; 9 things to know at 9 am on December 14, 2022

Major Wall Street indices clocked gains on December 13 after a lower-than-expected inflation number buoyed optimism that the Federal Reserve could decrease the pace of interest rate hikes. The US FOMC meeting outcome is due on December 14. The Dow Jones Industrial Average gained 0.30 percent, the S&P 500 rose 0.73 percent and the Nasdaq Composite jumped 1.01 percent.

Asian markets followed their US peers and advanced in trade thanks to downbeat US inflation numbers ahead of the Federal Reserve’s policy decision later on December 14. Shares in Hong Kong, Japan, and South Korea rose, along with US equity futures, indicating improved risk appetite of investors. However, China's Shanghai Composite Index traded volatile.

As reported by Reuters, US consumer prices rose less than expected for a second straight month in November, with underlying consumer prices advancing by the least in 15 months. The consumer price index increased 0.1 percent last month after advancing 0.4 percent in October. Economists polled by Reuters had forecast the CPI would increase 0.3 percent.

Domestic equities ended higher on December 13 amid positive global cues. Sensex closed 403 points, or 0.65 percent, higher at 62,533.30 while the Nifty50 clocked a gain of 111 points, or 0.60 percent, to end at 18,608. The BSE Midcap index rose 0.25 percent while the Smallcap index clocked a gain of 0.40 percent.

SGX Nifty (Nifty futures on Singapore Stock Exchange) indicated a strong start for the domestic market on December 14. At 7:45 am, the SGX Nifty was trading 98 points, or 0.52 percent, higher at 18,798.5.

Oil prices fell in early trade on December 14 after industry data showed a big build in US crude inventories, rather than the decline forecast by analysts, reinforcing fears about weakening demand even as supply tightens, reported Reuters. Brent crude futures traded 0.5 percent lower at $80.30 per barrel around 7:45 am.

Gold prices traded flat in international markets on December 14 after lower-than-expected US inflation data raised expectations of a pause in rate hikes. Investors await the US Federal Reserve's rate-hike decision later in the day.

The rupee fell 27 paise to close at 82.81 per dollar in the previous session on December 13 after the greenback gained ahead of the US inflation numbers. Meanwhile, inflation numbers came lower than expected which weighed on the dollar on December 14.

The Indian market witnessed buying from foreign as well as domestic institutional investors on December 13. Foreign portfolio investors (FPI) bought Indian shares worth ₹619.92 crore on NSE, BSE and MSEI while domestic institutional investors (DIIs) also bought Indian shares worth ₹36.75 crore, data from NSE showed.