US stocks slipped as elevated PCE inflation kept rate-cut expectations in focus, while strong DII buying supported Indian equities; oil prices fell am…
1/5US markets: Wall Street opened slightly lower on Wednesday, August 26, after the latest personal consumption expenditures (PCE) inflation data showed price pressures remained elevated, while investors awaited Nvidia’s quarterly earnings report due after the closing bell.
2/5US Economic Data: US economic data due on Thursday, August 27, will include weekly jobless claims for the week ended August 22, with the estimate at 208K versus 206K previously. The advance US trade balance in goods for July and wholesale and retail inventories for July are also scheduled at 8:30 AM. The Kansas City Fed Survey for August is due at 11:00 AM, with the previous reading at 17.
3/5Oil prices: Crude oil prices could fall to $70–80 per barrel as the global oil market moves into surplus in 2027, said Iman Nasseri, MD–Middle East Research at FGE NexantECA. He expects the surplus to exceed 3 million barrels per day if OPEC does not intervene, or around 2 million bpd or less if it acts to balance the market. A gradual recovery in Strait of Hormuz flows, alongside structural demand weakness from EV adoption and changing petrochemical feedstocks, could add to downward pressure on prices.
4/5US-Iran war: Iran and Oman have restarted talks on managing the Strait of Hormuz, working towards a temporary navigational corridor and mine clearance to facilitate shipping. The developments raised hopes of renewed shipping through the strategic waterway, sending oil prices lower for a third straight session, with Brent crude slipping below $87 a barrel. Pakistan also reported significant progress in talks with Iran aimed at preventing further escalation, reopening the strait and reaching a negotiated end to the war. Japan, meanwhile, planned measures to diversify fuel supplies amid the closure.
5/5DII buying leads: Foreign institutional investors (FIIs) recorded a net purchase of ₹502.63 crore in Indian equities on a provisional basis on Wednesday. Domestic institutional investors (DIIs), meanwhile, remained strong buyers, recording net purchases of ₹6,425.16 crore. The combined institutional buying stood at ₹6,927.79 crore, indicating continued support from domestic investors despite relatively modest participation from foreign investors. The fund-flow data comes as investors tracked broader market trends and sectoral movements during the trading session.
