Tuesday Morning Briefing: Asian Stocks Mixed; Dollar Drops For Fifth Day
Your Tuesday morning briefing: SGX Nifty trades higher.
Asian stocks opened mixed after U.S. shares retreated and the dollar dropped as Federal Reserve officials rekindled the debate on the timing of future interest rate hikes.
The yen rose for the sixth day against the dollar and dragged Japanese stocks lower. Oil hovered around the $48 per barrel mark, while gold snapped its four-day winning streak. SGX Nifty futures indicate a positive start for Indian equities after the underlying NSE Nifty 50 Index fell the most in two weeks on Monday.
Fed Hike Debate
The Fed is on track to raise interest rates two, three or four times this year, if economic data remain robust, Chicago Fed President Charles Evans said on Monday. On the contrary, Minneapolis Fed President Neel Kashkari argued that there was no need to rush.
The U.S. central bank raised its benchmark lending rate by 25 basis points last week and signaled it anticipated another two increases by 2017 end.
The S&P 500 Index fell for the third consecutive session to its lowest level since the Fed raised rates. The Dow Jones Industrial Average dipped 0.04 percent to 20,905.86.
Oil Near $48, Gold Cools
Oil held near $48 a barrel on growing worries over global supply glut as Libya prepared to restart crude shipments and U.S. inventories were seen expanding.
U.S. crude stockpiles probably increased by 3 million barrels last week, according to a Bloomberg survey before a report on Wednesday from the Energy Information Administration.
Gold retreated to $1,230 per ounce, snapping its four-day streak that took it to the highest level in two weeks.
Positive Start?
The SGX Nifty Index was up 0.15 percent at 9,178 as of 7:05 a.m., after the underlying gauge fell the most since March 2 on Monday.
Shares of HCL Technologies Ltd. and Aurobindo Pharma Ltd. will be in focus today. Software services provider HCL Technologies announced a buyback worth Rs 3,500 crore and Aurobindo Pharma received U.S. Food and Drug Administration’s approval for generic Mucinex tablets, used to treat chest congestion caused by cold, infections, or allergies.
