10 things you need to know before the opening bell on December 1
1. Asia: Shares in Asia-Pacific were higher in Tuesday morning trade as investors await the release of a private survey of China’s manufacturing activity. In Japan, the Nikkei 225 advanced 0.88 percent in early trade while the Topix index added 0.78 percent. South Korea’s Kospi gained 1.03 percent. Shares in Australia also edged higher, as the S&P/ASX 200 rose 0.59 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.18 percent higher, reported CNBC International. (Image: Reuters)2. US: U.S. stock futures rose on Monday night after the major averages notched sharp monthly gains for November. Dow Jones Industrial Average futures traded 140 points higher, or 0.5 percent. S&P 500 and Nasdaq 100 futures advanced 0.6 percent and 0.8 percent, respectively. The Dow rallied 11.8 percent in November, posting its best one-month performance since January 1987. The S&P 500 and Nasdaq Composite rose 10.8 percent and 11.8 percent, respectively, for their strongest monthly advances since April, reported CNBC International. (Image: AP)3. Closing On Friday: The Indian benchmark equity indices, Sensex and Nifty, ended Friday’s choppy session on a weak note. The Sensex ended 110.02 points or 0.25 percent lower at 44,149.72 while the Nifty lost 18.05 points or 0.14 percent to close at 12,968.95. Broader indices outperformed the benchmarks as the Nifty Smallcap100 surged 3.07 percent and the Nifty Midcap100 rallied 2.7 percent. Among sectors, barring Nifty IT, all others ended in the green led by Nifty Auto, Nifty Realty, Nifty PSU Bank and Nifty Pharma. For the week, Sensex was up 0.6 percent and Nifty gained 0.9 percent. Nifty Bank added 1.3 percent while the Nifty Midcap index rallied 4 percent. (Image: Reuters)4. Crude Oil: Oil declined on Monday on uncertainty about whether OPEC+ would agree to extend its deep output cuts at talks this week, but COVID-19 vaccine hopes kept crude benchmarks on track to rise by more than 25 percent in November. Brent crude for January delivery, which expires on Monday, dropped 64 cents, or 1.33 percent, to $47.54 per barrel. The more actively traded February Brent contract was down 48 cents at $47.77. U.S. West Texas Intermediate crude for January settled 19 cents, or 0.4 percent, lower at $45.34 per barrel, reported CNBC International. (Image: Reuters)5. Rupee: The Indian currency benchmark rupee snapped its five-day winning streak and settled 17 paise lower at 74.05 per US dollar on Friday amid subdued domestic equities and demand for the greenback from banks and importers. Every week, the rupee gained 11 paise. (Image: Reuters)6. Moderna Vaccine Shows 94% Efficacy: Moderna vaccine shows 94 percent efficacy against severe COVID-19. The pharma giant plans to ask FDA for emergency clearance later in the day. Moderna said on November 30 that it will request for emergency clearance of its COVID-19 vaccine from the US Food and Drug Administration as latest data suggests that the vaccine is over 94 percent effective in preventing COVID-19. Moderna is just behind Pfizer and its German partner BioNTech in seeking to begin vaccinations in the U.S. in December. Across the Atlantic, British regulators also are assessing the Pfizer shot and another from AstraZeneca. (Image: Reuters)7. Govt Spending On Vaccination: The government’s back of the envelope calculation suggests the first phase of priority vaccination for COVID could entail a spend of Rs 18,000 crore. Sources say a double dose vaccination drive could fall in the range of Rs 600 per person, including the delivery and administration costs. With the expert panel on vaccine administration comprising Niti Aayog and health ministry officials, in the process of identifying 30 crore priority beneficiaries like health care and sanitation workers, police, people with co-morbidities and the elderly, the projected cost of vaccination in the initial phase could settle around Rs 18,000 crore. For a larger population, the government may look at a projected spend of Rs 48,000 crore – Rs 50,000 crore, including the high-risk groups. Depending of course on the efficacy and availability of the vaccine. (Image: Reuters)8. Amit Shah On GDP: Union Home Minister Amit Shah on Monday said he hopes the GDP will be back to positive territory in the next quarter, after two consecutive quarters of contraction. “As prime minister, Narendrabhai used the time of COVID-19 pandemic to visualise policy-making, keeping in mind its long-term impact on the economy,” Shah said. Without wasting a second, he worked on reforms in many areas like the farm sector, electricity, industrial policy, to create a system to maintain the pace of development, he said. Towards this end, he offered a package of Rs 20 lakh crore for the welfare of poor people and to give pace to the economy, he said. “As a result, in terms of the recent GDP figure, we are only six percent behind…and I hope that in the next quarter, the GDP will be in plus (positive),” Shah added. (Image: PTI)9. India Ratings On Passenger Vehicles: Domestic passenger vehicle and two-wheeler wholesales will come down in the next few months as inventory levels remain high at dealer level, according to rating firm India Ratings and Research (Ind-Ra). The overall auto industry would however continue to grow in the next few months, it noted. “With the festive season now over in India, the rating agency expects wholesale billings to moderate in the next couple of months, given that the inventory at dealer level for passenger vehicles (PVs) and two-wheelers is already at higher than the 21 days recommended by Federation of Automobile Dealers Association (FADA),” Ind-Ra said in a statement. However, it expects the overall automotive industry to continue to revive in the next two to three months, in line with improving economic indicators, it noted. (Image: Reuters)10. Moody’s On Capital Decline: Moody’s Investors Service on Monday said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion. In a report, Moody’s said the uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current COVID pandemic. The 2021 outlook for banks in emerging markets is negative, while the outlook for insurers is stable, it said. “In the Asia Pacific region, banks’ rising nonperforming loans and insurers’ volatile investment portfolios are in focus. Capital will moderately fall in emerging Asia over the next two years, and banks in India and Sri Lanka will post larger capital declines without public or private injections,” Moody’s said. (Image: Reuters)
