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Market Movers: What changed for D-Street while you were sleeping

US stocks closed higher as upbeat jobs report lifted investors' sentiment.

ETMarkets.com|
Last Updated: Dec 09, 2019, 08.18 AM IST
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Nifty futures on the Singapore Exchange traded 10 points, or 0.08 per cent, down at 11,944.50, indicating a flat to negative start for Dalal Street.
NEW DELHI: Indian equity indices may open flat as SGX Nifty signalled indecisiveness on Dalal Street amid domestic macro-economic uncertainties. Technical charts also signalled a short-term correction.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for weak start
Nifty futures on the Singapore Exchange traded 10 points, or 0.08 per cent, down at 11,944.50, indicating a flat to negative start for Dalal Street.

Tech view: Nifty forms bearish candle
Nifty50 formed a bearish candle on the daily chart on Friday, as it broke below its immediate resistance in the 11,950-60 zone with ease, suggesting that a short-term correction might have set in.

Asian shares play catch up with Wall St
Asian stocks edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economy due to the prolonged Sino-US trade war. Japan's benchmark Nikkei advanced 0.3 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea's Kospi up 0.2 per cent and 0.6 per cent, respectively.

US stocks closed higher
US stocks closed higher as upbeat jobs report lifted investors' sentiment. On Friday, the Dow Jones Industrial Average was up 337.27 points, or 1.22 per cent, to 28,015.06. The S&P 500 increased 28.48 points, or 0.91 per cent, to 3,145.91. The Nasdaq Composite Index was up 85.83 points, or 1.00 per cent, to 8,656.53, Xinhua news agency reported.

FIIs sell Rs 867 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 867.66 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 210.72 crore, data suggests.

Crude prices tumble
Oil prices fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market. Brent futures were down 33 cents, or 0.5 per cent, at $64.06 per barrel by 0055 GMT, after gaining about 3 per cent last week, boosted by news that OPEC and allies would deepen output cuts.


MONEY MARKETS
Rupee: The Indian rupee appreciated 9 paise to close at 71.20 against the US dollar on Friday, a day after the RBI kept the policy rate unchanged and decided to continue with its accommodative stance to support the economy.

10-year bonds: India 10-year bond yields rose 0.6% to 6.67% on Friday, compared to 6.61% in the previous session, according to Bloomberg.

Call Rate: The overnight call money rate weighted average was 5.03% on Friday, according to RBI data. It moved in a range of 3.50-5.25%.

The DAY PLANNER

  • Japan Q3 GDP growth
  • Japan Oct current account deficit
  • US Nov consumer inflation expectations
  • NSE to kick off interest rate options
  • CAB to be tabled in Lok Sabha

MACROS
US unemployment lowest in 50 years
US non-farm payrolls increased by 266,000 jobs last month, the biggest gain in 10 months, while the unemployment rate ticked back down to 3.5%, its lowest level in nearly half a century. Those figures suggested the Trump administration’s 17-month trade war with China, which has plunged manufacturing into recession, has not yet spilled over to the broader US economy. The dollar held firm on Monday after data showed surprise strength in the U.S. jobs market, but the currency was restrained from moving higher by worries about an escalation in the U.S.-China trade war.

India seeing growth recession: Raghuram Rajan
Former Reserve Bank of India (RBI) governor Raghuram Rajan said India is in the midst of a "growth recession" with signs of deep malaise in the Indian economy that is being run through extreme centralisation of power in Prime Minister's Office and powerless ministers. Penning down his recommendations to help the ailing Indian economy out of the ongoing slowdown in the India Today magazine, he called for reforms to liberalise capital, land and labour markets, and spur investment as well as growth.

India’s FY20 GDP growth may slip below 5%
India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Latest GDP data for July-September quarter showed a significant further moderation in the pace of economic growth to 4.5%, the weakest in six years, led by manufacturing slump. This compared with the 5% in the previous quarter and 7% a year ago in September quarter of 2018.

China exports fall in Nov, imports recover
China's exports declined for the fourth consecutive month in November as a trade war with Washington rumbles on, official data showed Sunday, although imports rebounded. Exports were down by 1.1% in the last month of the year, after a drop of 0.9% in October on slowing global demand. The figures were worse than a Bloomberg forecast which expected an increase of 0.8%. Imports were up 0.3% from the year earlier, after falling for the previous six months. Analysts polled by Bloomberg had predicted a drop of 1.4%.

Farmers warn of onion glut in 2 months
The record high prices of onions will encourage large-scale cultivation of the crop in the next season, farmers and traders said. Onion prices have soared to Rs 200 a kg from Rs 25 a kg as heavy rains at the fag end of the monsoon season flooded onion fields, leading to much lower supply in the market. According to traders, onion imports will be feasible till end of January. Exports can start only from the second week of February and that too with MEP against letter of credit as by then the trade expects prices to crash.

Trump impeachment gains momentum
Democrats in the House of Representatives are drafting articles of impeachment against President Donald Trump and the Judiciary Committee may hold a vote this week, the panel’s chairman said on Sunday. Representative Jerrold Nadler told CNN’s “State of the Union” his committee will not decide on the charges against the Republican president until after a hearing on Monday to consider evidence gathered by the House Intelligence Committee that led the investigation.

US consumer inflation expectation data to be out today
US economic data on Consumer Inflation Expectations will be out on December 9. Inflation Expectations in the United States decreased to 2.33% in October from 2.48% in September of 2019. Inflation Expectations in the United States averaged 2.83% from 2013 until 2019, reaching an all-time high of 3.40% in August of 2013 and a record low of 2.33% in October of 2019.
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