The Indian markets look set to open flat to slightly lower on Thursday amid concerns over the potential global impact of China's stock-market rout. That said, India at this juncture remains insulated from the China's market meltdown as India is a net importer of global commodities and there is not much cross investment into China.
The benchmark indexes Sensex and the Nifty plunged about 1.7 percent each on Wednesday, as concerns about an already slowing Chinese economy hit commodity prices and the Greek debt saga continued to take center stage.
Asian shares are broadly lower as Chinese stocks continued to head lower despite new steps to prop up stocks. The benchmark Shanghai Composite index is currently down about 0.2 percent after tumbling more than 3 percent early in the day.
China's securities regulator banned senior management and investors who own stakes in businesses exceeding 5 percent from selling their shares for next six months in a bid to curb crashing prices on its stock markets.
China's central bank said it would provide sufficient liquidity to China Securities Finance Corp, the state-backed margin finance company, via various channels. The China Banking Regulatory Commission said it would encourage banks to support companies' share buybacks by offering them collateralized loans.
China's inflation data also failed to allay investor concerns. Official data showed that China's consumer inflation edged up slightly in June, while producer prices remained entrenched in deflation for a 40th consecutive month.
Japan's Nikkei index is losing 0.7 percent as the yen rose to a seven-week high against the dollar on lingering worries about Greece's debt crisis and concerns that the rout in Chinese shares may spread to the wider economy.
South Korea's Kospi average is down 0.6 percent as the country's central bank held its key interest rate at a record low. Australia's All Ordinaries index is declining half a percent, while Hong Kong's Hang Seng index is rallying 3 percent.
U.S stocks fell sharply overnight amid growing concerns that trouble in China's markets could spread to its economy over the long term. The Dow plunged 1.5 percent to close at a five-month low, while the S&P 500 and the tech-heavy Nasdaq plummeted 1.7 percent and 1.8 percent, respectively to close at their worst levels since March and April. The NYSE halted trading for more than three hours due to technical problems.
The minutes from the latest FOMC meeting indicated that policymakers were concerned about weak spots in the economy and foreign risks, and expressed a willingness to wait another meeting or two for additional data before raising interest rates.
The European markets closed Wednesday's session firmly in positive territory after four straight days of declines. The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 rose between 0.7 percent and 0.9 percent after the Greek government formally requested a new three-year bailout from the Eurozone's rescue fund and promised to implement some austerity measures as early as next week.
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Market Analysis
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.