Asian stocks opened mixed after gains in their U.S. counterparts fizzled out as investors continued to assess the impact of trade tensions on the outlook for global growth.
Equities in Japan dropped, while indexes in South Korea and Australia were flat. China’s yuan and stock market remain in the spotlight after the nation’s central bank vowed to keep the currency stable and not to deploy it as a weapon in the trade conflict with the U.S.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded nearly 0.1 percent lower at 10,725 as of 7:00 a.m.
Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks reversed an early climb and ended lower Tuesday, as weakness in technology and financial shares weighed on benchmarks.
- The yield on 10-year Treasuries slid four basis points to 2.83 percent on Tuesday.
U.S. financial markets will be closed in observance of the Independence Day.
- European stocks rallied yesterday from the lowest level in three months as energy shares advanced after oil briefly surged to a 2014 high on global supply outages.
- The euro gained 0.1 percent to $1.1651.
- The British pound climbed 0.2 percent to $1.3170.
- Germany’s 10-year yield dipped one basis point to 0.294 percent.
- Britain’s 10-year yield fell one basis points to 1.243 percent.
- Japan’s Topix index slipped 0.3 percent.
- Australia’s S&P/ASX 200 was little changed.
- Futures on Hong Kong’s Hang Seng dropped 0.5 percent.
- The S&P 500 fell 0.5 percent and the Nasdaq 100 Index dropped 1.2 percent.
- The yen was up 0.1 percent at 110.44 per dollar.
- West Texas Intermediate crude rose 0.5 percent to $74.28 a barrel.
- Gold was up 0.2 percent to $1,255.01 an ounce.
- Steel snapped two-day losing streak; up 0.6 percent.
- Aluminium snapped three-day losing streak; up 0.1 percent.
- Zinc traded lower; down 1.8 percent.
- Copper traded lower for fourth day; down 0.9 percent.
- Rubber traded lower for fourth day; down 0.4 percent.
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Here are some key events coming up this week:
- Federal Reserve releases minutes of its June 12-13 meeting, when FOMC policy makers raised the benchmark rate a quarter point for the second time this year and lifted the median forecast to four total increases in 2018.
- U.S. payrolls are due Friday.
- Also on Friday, the U.S. is scheduled to impose tariffs on $34 billion of Chinese goods. Beijing has said it will slap tariffs on an equal value on U.S. exports including agricultural and auto exports.
Stocks To Watch
- Fortis Healthcare will evaluate binding bids it received with advisors.
- IFC invested $100 million in M&M Financial Services.
- GE Power India received order worth Rs 468 crore from BHEL.
- ISGEC Heavy Engineering emerged as lowest bidder for Rs 700 crore thermal power project.
- VST Tillers June total sales down 24 percent to 3,819 units versus 5,053 units.
- Sadbhav Infra achieved financial closure for Rajasthan project.
- Kwality said board deferred proposed share buyback and bonus issue.
- Dena Bank proposed to sell NSDL E-Governance Infrastructure, NSDL and SIDBI shares.
- United Bank of India hiked MCLR by 10 basis points across all tenors from July 5.
- GVK Group may sell its nearly 50 percent stake in TAJGVK Hotels and Resorts—a joint venture with Tata Group’s Indian Hotels Company—to Fairfax Holdings.(Economic Times).
- Federal Bank in talks to acquire Madura Microfinance for Rs 720-750 crore (Economic Times).
Economic Data To Watch
- 10:30am: Nikkei India Services PMI for June, prior 49.6
- 10:30am: Nikkei India Composite PMI for June, prior 50.4
- All Cargo Logistics : Promoter Shashi Kiran Shetty bought 12.29 lakh shares or 0.5 percent equity at Rs 110 each.
- 8K Miles Software Services: Kotak Mahindra Investments sold 1.70 lakh shares or 0.6 percent equity at Rs 323.54 each.
- Windsor Machines: Indianivesh Capitals Limited bought 3.40 lakh shares or 0.5 percent equity at Rs 104.97 each.
- Saurashtra Cement: Indianivesh Capitals Limited bought 4.95 lakh shares or 0.7 percent equity at Rs 57.4 each.
Who’s Meeting Whom
- Zensar Technologies to meet investors on July 5.
- Mahanagar Gas to meet Jefferies India on July 11.
- Laurus Labs promoter Dr Satyanarayana Chava acquired 84,564 shares from June 28–29.
- Bombay Dyeing to continue in ASM but shifted to T group from A group.
- 8K Miles Software Services Ltd. circuit filter revised to 10 percent.
- Gammon Infrastructure Projects Ltd. circuit filter revised to 5 percent.
- DCM Shriram Limited buyback up to Rs 250 crore at maximum price of Rs 450 per shares starts today.
- Safari Industries (India), Sandur Manganese & Iron Ores and Waterbase shifted to B group.
- RITES and Fine Organic Industries added to S&P BSE IPO Index.
- Nifty July futures closed trading at 10,723.9, premium of 24 points versus 0.9.
- July series: Nifty open interest up 3 percent and Bank Nifty open interest up 5 percent.
- India VIX ended at 13, down 2.7 percent.
- Max open interest for July series at 11,000 Call (open interest at 36.3 lakh, down 1 percent).
- Max open interest for July series at 10,600 Put (open interest at 51.6 lakh, OI up 9 percent).
- Nifty PCR at 1.50 versus 1.45.
- Nifty Bank PCR at 0.78 versus 0.75.
- Rupee closed at 68.58/$ on Tuesday from 68.80/$ on Monday.
Goldman Sachs on United Breweries
- Initiated ‘Neutral’ with a price target of Rs 1,171.
- Well placed to benefit from a pickup in volume and premiumisation of the market.
- Government intervention can be very disruptive to volumes/margins.
- Cultural/social norms and retail network issues to limit acceleration in beer consumption.
- Rising competitive intensity from global peers to challenge market share growth.
Citi on Jindal Steel & Power
- Maintained ‘Buy’ with a price target of Rs 401; implying a potential upside of 94 percent from the last regular trade.
- June quarter production and sales show decent traction despite weak seasonality
- Steel spread in June quarter to expand on a quarterly basis
- Qualitatively operations have done well across locations in the previous quarter.
- Valuations quite attractive with improving cash flows and Ebitda.
Emkay on ACC
- Upgraded to ‘Buy’ from ‘Hold’; cut price target to Rs 1,613 from Rs 1,622.
- Focus back on growth after a lull of five years a big positive.
- Cost pressures prevail, but cost efficiency measures are paying off.
- Cheap valuation and strong balance sheet provide comfort.
- Any announcement of capacity addition/acquisition would be taken positively.