A look at top macro triggers that may move market on Friday.
Here’s a lowdown on top macro triggers that may move market on Friday. This report was compiled from agency feeds.
Oil Edges Up, Set for Weekly Decline Oil prices nudged higher on Friday but were set for a second weekly drop amid higher US crude inventories, an ongoing Sino-US trade war and concerns over the death of a prominent Saudi journalist. US WTI crude for October delivery CLc1 was up 27 cents, or 0.4%, at $68.92 a barrel by 0124 GMT. Front-month London Brent crude for December delivery LCOc1 was up 34 cents, or 0.4%, at $79.63 a barrel. For the week, US crude was down 3.5% while Brent was 1.1% lower, putting both on track for a second consecutive weekly decline.
Gold Up, In Line for Third Weekly Rise Gold prices nudged higher early Friday as Asian shares fell on renewed political and economic concerns, with the metal on track for its third straight weekly rise. Spot gold XAU= was up 0.2% at $1,227.31 an ounce at 0107 GMT. It was up about 0.7% for the week. US gold futures GCcv1 were little changed at $1,230.60 an ounce.
China Q3 Growth Lower Than Expected China’s economy grew at a slower than expected pace of 6.5% in the third quarter from a year earlier, marking the weakest rate since the global financial crisis, official data showed on Friday. The data points to a modest cooling in the world’s second-largest economy, as the government’s multi-year efforts to tackle debt risks begin to weigh on growth and as a trade war with the United States threatens exports.
Tighter Norms for Independent Directors Soon The government is considering a purge of company board rooms to remove independent directors who haven’t played the oversight role required of them, the latest instance being the IL&FS debacle. The Companies Act may be tweaked to allow sacking of directors who haven’t played oversight role well. Those disqualified under this process won’t be able to hold a board position in any company for five years, according to the proposal.
India May Be Soon Off US Currency Watch List India moved a step closer to getting off the US Treasury’s watchlist on currency after the central bank’s reserves accumulation showed a reversal of trend this year and the rupee depreciated against the greenback. The half-yearly report to the Congress, which also saw China escape the tag of currency manipulator, showed that India’s current account deficit worsened and foreign exchange reserves shrank due to flight of capital. That left only one criteria to be considered as a currency manipulator – India’s bilateral trade position with the US.
Consumer Confidence Plummets Consumer confidence declined in September due to worries about savings, investment and personal finances for household expenses. The Consumer Confidence Index plummeted 6.6 percentage points as consumers were worried about various factors such as personal finances for day to day running of the household, savings and investments, said Indian Primary Consumer Sentiment Index (PCSI) for October. These are findings of an Ipsos online poll conducted Sept 21, 2018 - October 5, 2018.
Air India has recommended to the government that its low-cost subsidiary and ground-handling unit be sold to improve the national carrier’s financial position in what could be a precursor to its eventual divestment. This follows a failed plan to sell the debt-laden, state-owned airline earlier this year.
Credit Mkt Tightness Not to Impact Economy The current tightness in the credit market is unlikely to impact economic growth in any meaningful way beyond the next two quarters, notwithstanding the cautious view on the domestic equity market, said foreign CLSA. The brokerage said that banks lost market share to NBFCs and direct corporate borrowing in last two years but now that yields have been going up for the last one year, banks are likely to win back market share. Credit growth in the economy is unlikely to suffer meaningfully.
Monsoon Update The southwest monsoon is set to withdraw from all parts of the country by Saturday, as conditions become favourable for the onset of monsoonal showers over peninsular India, the weather office said. The northeast monsoon brings about 30% of south peninsula’s annual rainfall in the October to December season. Tamil Nadu, in particular, receives 48% of its yearly rainfall during the season.
POLICIES & MORE
The government is expected to come out with a comprehensive gold policy soon to promote the metal industry and the gems and jewellery sector, which is a major contributor to the export basket, sources said. The policy also aims at creating jobs in the gold sector.
A number of Indian and international steel plant equipment makers and technology providers, including BHEL, HEC, Primetals Technologies, Nippon Steel and Paul Wurth, are set to sign deals in Bhubaneswar next week to manufacture machinery domestically. Steelmakers such as Tata Steel and Jindal Steel & Power Ltd are also expected to sign tripartite agreements with Indian and global capital goods firms for assured offtake.
Top Video I Get More Cautious When Things Go Well For a Long Time: Howard Marks
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Global market guru Howard Marks on Wednesday rubbished the practice among brokerages to make forward-looking projections, saying “ it is not possible to know what is going to happen tomorrow.”
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