Cautious

• Indian Prime Minister Narendra Modi and Chinese President Xi Jinping will hold talks on September 12 during the BRICS summit. • The meeting occurs on the sidelines of the summit to address the ongoing relations between the two nations. • This diplomatic engagement represents a cautious thaw in relations following a period of conflict between the two countries.

• Indian stock markets faced heavy selling pressure on Wednesday as foreign portfolio investors sold off shares. • Brent crude oil prices crossed the $100 mark, which dampened investor morale. • Rising oil costs create a volatile environment for the Indian market, though domestic institutional investors used the dip to purchase stocks.

• Singapore's retail sector is facing a downturn as higher living costs and economic uncertainty reduce consumer spending. • Softer labor conditions and rising expenses are expected to weigh on demand for retail goods in the coming months. • Cautious shopping habits may lead to lower revenue for businesses and a slower growth rate for the local retail market.

• Asian equity markets are seeing cautious gains as investors focus on upcoming US jobs data, geopolitical tensions involving Iran, and movements of the Yen. • Bank of England chief economist Pill suggested the bank rate needs to be raised to 4%. • Market volatility is expected as traders balance dovish signals from the US Federal Reserve against hawkish stances from the BOE and vigilance from the Riksbank.

• ECB Governing Council member Joachim Nagel has signaled that the European Central Bank is set to increase borrowing costs during its meeting next week. • While Nagel is confident about the immediate hike, he expressed caution regarding the trajectory of future interest rate adjustments. • This move reflects the ECB's ongoing efforts to combat inflation across the eurozone by tightening monetary policy.

• Indian markets are expected to open flat to slightly negative on September 2, 2026, with the GIFT Nifty trading at 24,028.50, down 0.10%. • This cautious outlook follows a global selloff, including US market drops in the NASDAQ (-1.03%) and Dow Jones (-0.79%), and a steep 2.78% decline in Japan's Nikkei 225. • Despite the global trend, domestic sentiment was supported on September 1 by FIIs and DIIs, who injected ₹1,143.38 Cr and ₹1,846.94 Cr respectively.

• Global stock markets opened cautiously on Monday as escalating conflict between the U.S. and Iran drove oil prices up by 2 per cent. • Borrowing costs in Japan and Germany reached multi-year highs, while rising oil prices intensified concerns regarding persistent global inflation. • New Zealand's central bank is expected to raise interest rates this Wednesday, whereas the Bank of Canada is predicted to hold rates steady due to U.S. trade dispute risks.