Tag: global markets

Closing Bell: Market closes largely flat with positive bias; TCS gains after board approves share buyback approval

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Market closes in the red due to weak global cues; WPI inflation surges 4.43%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares down on Fed hike, Sino-US trade anxiety

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares edged down on Thursday after the Federal Reserve raised interest rates and took a more hawkish tone in forecasting a slightly faster pace of tightening for the rest of the year, while concerns about US-China trade frictions kept investors on edge.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.25 percent in early trade. South Korea’s KOSPI was off 0.9 percent, while Australia’s market slipped 0.2 percent.

Japan’s Nikkei shed 0.7 percent.

The Fed raised its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, as expected, on the back of strong US economic growth.

The markets, however, latched on to a change in Fed policymakers’ rates projections, which pointed to two additional hikes by the end of this year compared to one previously, based on board members’ median forecast.

The spectre of higher borrowing costs hit stocks while boosting US bond yields and the dollar. The overall market reaction was short-lived, however.

“When you look more closely, only eight board members saw two more hikes by the end of year, compared to seven who saw one hike. In March it was seven versus eight. So you are talking about a change of only one board member after all,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“The fact that markets quickly reversed their course suggests the Fed’s decision was broadly in line with expectations,” he said.

On Wall Street, the S&P 500 lost 0.40 percent and the Nasdaq Composite dropped 0.11 percent.

The 10-year US Treasuries yield hit a three-week high of 3.010 percent before quickly slipping back to 2.973 percent.

Keeping investors in check were concerns about US threats to impose tariffs on billions of dollars in Chinese goods.

US President Donald Trump will meet with his top trade advisers on Thursday to decide on whether to activate the tariffs, a senior Trump administration official said.

In the currency market, the dollar had erased all its post-Fed gains as traders’ focus quickly shifted to the European Central Bank’s policy meeting later in the day.

Recent comments from top ECB officials have sparked expectations the ECB may offer clues on its intentions to end its bond purchases by the end of year at its upcoming meeting.

The euro traded at $1.1801, bouncing back from $1.1725 hit after the Fed’s policy announcement and not far off last week’s high of $1.1840 on June 7.

The dollar stood at 110.13 yen, losing steam after hitting a three-week high of 110.85 in the wake of the Fed’s decision.

The dollar index has erased all of its gains so far this week and stood at 93.495.

Oil prices firmed on a bigger-than-expected decline in US crude inventories and surprise drawdowns in gasoline and distillates, which indicated strong demand in the world’s top oil consumer.

US crude futures traded at $66.64 a barrel, unchanged on the day but extending their recovery from eight-week low of $64.22 touched last week.

Bitcoin fell to four-month low of $6,120 on Wednesday and last stood at $6,442. The cryptocurrency has fallen about 17 percent over the past five days.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Market closes positive, Nifty holds 10,800; TCS surges 2% after firm agrees to consider share buyback proposal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Market advances in close post Trump-Kim meet; pharma stocks gain

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global Markets: Asia stocks edge up after G7 summit, central bank meetings eyed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asia stocks shook off initial modest losses and edged up on Monday ahead of a US-North Korea summit that might ease regional tensions, while investors also started to focus on key central bank meetings later this week.

Stocks dipped after US President Donald Trump backed out of a joint Group of Seven communique over the weekend, in a blow to the group’s efforts to show a united front.

The S&P 500 futures were down 0.1 percent after dropping as much as 0.3 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped early but was last up 0.15 percent. Hong Kong’s Hang Seng gained 0.3 percent, while the Shanghai Composite Index fell 0.5 percent.

South Korea’s KOSPI added 0.4 percent, and Japan’s Nikkei climbed 0.3 percent.

“What took place at the G7 weekend was within the scope of earlier expectations. And while the countries disagreed on trade, they did seem to show a unified front on the North Korean issue, so there is also a positive element from the G7 affecting risk sentiment,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

After the G7 meeting, the US president withdrew his support for its communique and raised fresh trade concerns by taking aim at Canadian Prime Minister Justin Trudeau amid a spat over import tariffs.

“The G7 meeting in Canada reiterated the growing rift between Washington and its allies over free trade,” wrote Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management.

“Business confidence, and subsequently capital spending, is at risk if this tension continues through the summer,” he said, adding that central bank meetings will be critical events this week.

Trump and North Korean leader Kim Jong Un will have an unprecedented meeting on Tuesday in Singapore, possibly laying the groundwork for ending a nuclear stand-off between the old foes.

Investors also got prepared for a raft of other key events.

The Federal Reserve holds a two-day meeting starting on June 12, and it is widely expected to raise interest rates for the second time this year. The focus is on whether the central bank will hint at raising rates a total of four times in 2018.

The European Central Bank meets on June 14, when it could signal intentions to start unwinding its massive bond purchasing programme.

On Monday, the dollar slipped against the yen, which often draws demand in times of market turmoil and political tensions.

The greenback was down 0.1 percent at 109.455 yen .

The Canadian dollar, which has been dogged by fears Trump may scrap the North American Free Trade Agreement (NAFTA), fell 0.25 percent to C$1.2959 per dollar.

The euro, which was lifted last week amid the prospect of the ECB signalling its exit from easy policy, was 0.25 percent higher at $1.1801 .

The dollar index against a basket of six major currencies was 0.15 percent lower at 93.410 .

Oil prices were mixed, caught between the downward pull of rising Russian production and US oil drilling activity, and upward pressure from strong demand.

Brent crude futures were up 0.1 percent at $76.55 a barrel. US crude futures. Slipped 0.15 percent to $65.66 a barrel.

Bitcoin struggled near two-month lows after South Korean cryptocurrency exchange Coinrail said it was hacked over the weekend, raising concerns about security at small- to mid-sized virtual currency exchanges.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

June 11: Here’s what you should know before the opening bell

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian market made a smart recovery in the last hour of trade on Friday to end the session flat on Friday.

The Sensex recovered by 184 points to end the session 19 points lower at 35,444, while the benchmark Nifty index gained 59 points to close 1 point in the red at 10,768.

In the broader markets, the Nifty Midcap index gained 96 points to end the session at 18,831. The Nifty Bank index was the biggest underperformer amongst key indices with the Index closing 66 points in the red at 26,451.

Here’s what you should know before the opening bell

• The government has set up a new panel to look at the possibility of creating an asset management company in order to fast-track resolution proceedings for stressed assets. Sunil Mehta, PNB chairman, will lead the committee. The government is likely to appoint heads of five state-run banks in the next 30 days, said Piyush Goyal, interim finance minister.
• The government has extended the deadline for submitting the expression of interest for Pawan Hans to June 18, the earlier deadline was June 11. The government issued fresh information on the memorandum for the company’s divestment on April 13.
• In its first drive during financial year 2017-18, registrar of companies(ROCs) identified and removed the names of 2,26,166 shell companies from the register of companies, disqualifying around 3,09,619 directors.
• Bashing the leader of one of America’s venerable allies, the White House escalated its trade tirade and levelled more withering and unprecedented criticism on Sunday against Canada’s prime minister, branding Justin Trudeau a back-stabber unworthy of President Donald Trump’s time.
• The Trump-Kim meet is scheduled for Tuesday. US President Donald Trump has arrived in Singapore, where the meet will be held.
• The US dollar ended higher against the rupee at Rs 67.50/51 per dollar and the pound sterling finished higher at Rs 90.40/42 at the close of the Interbank Foreign Exchange (forex) on Friday.
• Crude oil prices extended losses after retreating on Friday on concerns about surging US output and falling demand in China. Brent crude futures were down 0.1 percent at $76.38 a barrel.
• The fuel prices were cut for the thirteenth consecutive day. In Mumbai, the petrol price has been reduced by 20 paise to Rs 84.41 per litre, while the diesel prices were cut by 16 paise to Rs 72.35 per litre. Petrol prices have been slashed by around Rs 1.83 per litre in Mumbai, while diesel is down nearly 1.44 since May 29.
• Amid concern around data security, the Reserve Bank of India is learnt to have asked payment services firms to provide an update on action taken by them to store transaction data in the country in every fortnight.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Market closes in the green, Nifty falls below 10,800; Bharti Airtel among top gainers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wall Street rose on Friday as investors eye Fed decision

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central bank meetings.

The S&P 500 stayed in positive territory in the afternoon after reversing losses in the early afternoon with its biggest boosts coming from the health care and consumer staples sectors.

Investors appeared to put aside worries about US relations with its biggest trading partners. G7 major nations started what was expected to be a tense meeting after US President Donald Trump’s decision to impose tariffs on steel and aluminium imports from Canada, the European Union and Mexico.

Expectations for any breakthroughs at the two-day meeting in La Malbaie, Quebec, were low. “It’s highly unlikely there will be a final communique,” a G7 official said on condition of anonymity.[nL2N1TA0IJ]

But some investors appeared hesitant ahead of US and European central bank meetings and a North Korea-US summit set for June 12.

“There’s a lot for investors to digest but when you parse through the noise there’s still a lot of strength in the economy and that’s what investors keep gravitating to,” said Carol Schleif, Deputy Chief Investment Officer, Abbot Downing in Minneapolis.

Specifically investors were focused on expectations for strong growth among US corporations, according to Katrina Lamb, head of investment strategy and research at MV Financial, in Bethesda, Maryland.

She cited expectations for sales growth of more than 7 percent this year. Wall Street estimates 2018 earnings growth of 22.2 percent, according to Thomson Reuters I/B/E/S.

“The math looks really good in terms of the relation between price and earnings and sales,” said Lamb. “This is a perfectly good time to be long the market.”

The Dow Jones Industrial Average rose 75.12 points, or 0.3 percent, to 25,316.53, the S&P 500 gained 8.61 points, or 0.31 percent, to 2,778.98 and the Nasdaq Composite added 10.44 points, or 0.14 percent, to 7,645.51.

For the week, the S&P rose 1.62 percent while the Dow added 2.76 percent and the Nasdaq gained 1.21 percent.

The consumer staples index was the biggest percentage gainer of the S&P’s 11 major sectors, with a 1.3 percent advance. Its biggest drivers were Procter & Gamble which continued its rally from the previous day, rising 1.9 percent, and Philip Morris , which rose 2.6 percent after it announced a 6.5 percent dividend hike.

Monster Beverage, another staples company, rose 4.7 percent after the energy drink maker said it was “highly likely” it would raise prices later in the year.

The Healthcare index was the S&P’s boost with a 0.7 percent gain and its biggest driver was Allergan, which rose 4.3 percent.

The technology sector was barely positive with a 0.03 percent gain. Dragging on the sector was Apple Inc and its suppliers which were down following a report that the iPhone maker was planning to produce fewer phones this year. Apple was last down 1 percent.

In the quietest trading day since May 25, 6.05 billion shares changed hands on US exchanges on Friday, compared to the 6.6 billion average for the last 20 days.

The Federal Reserve is widely expected to announce an increase interest rates in its post-meeting statement on Wednesday and investors will be watching for signals from the US central bank on its plans for the rest of the year.

US investors are also keeping an eye on Europe as the European Central Bank’s chief economist has said policymakers meeting on June 14 will debate whether to end bond purchases this year.

An unprecedented meeting between Trump and North Korea’s leader Kim Jong Un is also scheduled for June 12 in Singapore.

Advancing issues outnumbered declining ones on the NYSE by a 1.42-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favoured advancers.

The S&P 500 posted 25 new 52-week highs and no new lows; the Nasdaq Composite recorded 143 new highs and 20 new lows.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market opens lower due to weak global cues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The market has opened lower due to weak global cues with the BSE Sensex trading at 35,406 points and the NSE Nifty at 10,734 points due to weak global cues.

HDFC, Reliance and the oil marketing companies are losing in the opening trade.

The oil marketing companies are losing in trade as the oil prices rose today. Coal India, Tech Mahindra, Dr Reddys Labs, HCL Tech and Cipla are the top index gainers of the hour.

(The above-mentioned detail is the opening bell for the market on Friday, June 8)

What was expected?

The Indian market is likely to have a tepid opening due to weak global cues.

The SGX Nifty is trading at levels around 10,725 as against the Nifty June Thursday’s future close of 10,729 points, indicating a flat to negative opening for the Indian market.

The Asian shares are set for a soft start on Friday as global risk appetite deteriorated on worries the European Central Bank was ready to start tapering its massive stimulus, although trade was expected to be cautious ahead of big diplomatic meetings.

E-Minis for the S&P500 and Dow futures were both down about 0.1 percent in early Asian trade. Nikkei futures slipped 0.6 percent while Australian share futures ticked 0.1 percent lower.

Uncertainty over how the trade discussions would pan outweighed on stocks and other risk assets overnight, with the S&P 500 and Nasdaq ending lower. A global trade war threatens the world economy’s first synchronous upturn in several years.

Another reason for market nerves was the widening rift between the United States and its major trade partners after President Donald Trump imposed import tariffs on steel and aluminium imports last week.

The Indian market on Thursday closed firmly in the green. The benchmark Nifty index closed 0.8% higher at 10,768 points after breaching 10,800 intra-day for the first time in 17 sessions, while the 30-stock Sensex gained 284 points to 35,463.

The broader markets also saw gains on the line of benchmarks, with the Nifty Bank index gaining 150 points to 26,518 and the Nifty Midcap index surging 281 points to 18,734.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow