Asian stocks followed overnight gains in American shares even as U.S.-China trade tensions are about to kick up a gear with the imposition of tariff increases on Friday.
Stocks in Japan, South Korea and Australia all rose, helping the MSCI Asia Pacific Index recoup a sliver of recent losses. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,724 as of 6:30 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks returned from a holiday break with a strong advance led by technology shares, even as markets prepared Friday’s jobs report and the implementation of fresh tariffs between America and China.
- The yield on 10-year Treasuries rose less than one basis point to 2.83 percent.
- European stocks advanced for a third day on speculation the U.S. will drop a threat to impose higher tariffs on the region’s cars.
- The euro added 0.3 percent to $1.1691.
- The British pound fell 0.1 percent to $1.3221.
- Germany’s 10-year yield dipped one basis point to 0.299 percent.
- Britain’s 10-year yield fell two basis points to 1.258 percent.
- The MSCI Asia Pacific Index rose 0.3 percent.
- Topix index climbed 0.7 percent.
- Kospi index rose 0.1 percent.
- Australia’s S&P/ASX 200 Index rose 0.2 percent.
- Futures on the S&P 500 Index fell 0.1 percent.
- Australia’s 10-year yield dipped one basis point to 2.583 percent, trading around the lowest since April.
- The Japanese yen rose 0.1 percent to 110.55 per dollar.
- West Texas Intermediate crude rose 0.2 percent to $73.09 a barrel.
- Brent crude traded 0.4 percent lower at $77.10 a barrel.
- Gold fell less than 0.05 percent to $1,257.62 an ounce.
- Zinc traded lower, down 0.6 percent.
- Steel traded higher, up 0.2 percent.
- Aluminium traded higher, 0.7 percent.
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Here are some key events coming up this week:
- U.S. jobs report for June. Consensus sees 195,000 new jobs, down from 223,000 in May.
- Also on Friday, the U.S. is scheduled to impose tariffs on $34 billion of Chinese goods and Beijing has said it will slap tariffs on an equal value on U.S. exports including agricultural and auto exports.
- Samsung’s quarterly results, coming later Friday, may take a hit from price drops in NAND memory chips and lower-than-expected sales from the flagship Galaxy S9 smartphone, analysts said.
Stocks To Watch
- Bandhan Bank’s Chandra Shekhar Ghosh gets RBI nod to be re-appointed as MD & CEO till July 2021.
- Sagar Cements said June cement production up 8.5 percent and cement sales down at 0.27 percent.
- Sobha new sales volumes in Q1 up 18 percent, share sales value up 9 percent and shares average realisation down 8 percent.
- Apollo Hospital Enterprises acquired 50 percent stake in Medics International Lifesciences for Rs 91 crore.
- Phoenix Mills arm acquired additional land parcel in Pune for Rs 1.36 crore.
- Berger Paints acquired 51 percent stake in a Japanese paint company to sell automotive refinish paints in India and Nepal.
- Adhunik Metaliks: Creditors' panel approved resolution plan.
- Muthoot Finance received RBI approval to acquire shares in Muthoot Money Pvt to diversify business.
- Supreme Court ordered auction of three Unitech properties in UP and TN (PTI).
- Info Edge and Temasek arm to jointly invest Rs 95.3 crore each for 3.5 percent stake in Etechases.
- Welspun Enterprises won HAM project worth Rs 2,004.51 crore and first year O&M cost of Rs 5 crore from NHAI.
- NSE imposed a penalty of Rs 1 crore on Electrosteel Steels Limited for not filing FY18 results.
- Ashoka Buildcon’s shareholders approve issue of bonus shares and fund-raising plans.
- Gujarat Gas looking to buy GAIL Gas’s stake in VGL for Rs 200-250 crore (Mint)
Earnings Reactions To Watch
GM Breweries (Q1, YoY)
- Revenue up 16.8 percent at Rs 110.4 crore.
- Net profit up 117.6 percent at Rs 22.2 crore.
- Ebitda up 118.6 percent at Rs 33.93 crore.
- Margin at 30.7 percent versus 16.4 percent.
- Other Income at Rs 1 crore versus vs Rs 1.4 crore.
- Varroc Engineering to start trading on BSE/NSE after IPO got 3.6 times demand at Rs 967 a share.
- Orient Global Cinnamon Capital sold 1.35 crore shares or 2.59 percent equity at Rs 478 each.
- Jasmine Capital Investments acquired 1.35 crore shares or 2.59 percent equity at Rs 478 each.
Who’s Meeting Whom
- HPCL to meet Tata AMC Fund, HDFC Life and other investors from July 6- July 10.
- Cipla to meet L & T Mutual Fund on July 6.
- Singer India promoter sold 59,000 shares on July 7.
- Omaxe promoter Nakul Goel sold 50,000 shares on July 2.
- Jain Irrigation Systems promoter acquired 1 lakh shares on July 3.
(As reported on July 5)
- National Steel & Agro Industries and Kiri Industries placed under ASM.
- Akzo Nobel buy back period is between July 6-19.
- Nifty July Futures closed trading at 10,751.7, premium of 2 points versus 1.4 points
- July series-Nifty open interest up 1 percent and Bank Nifty open interest down 4 percent
- India VIX ended at 12.5, down 0.6 percent
- Max open interest for July series at 11,000 Call, open interest at 35.8 lakh, open interest down 2 percent
- Max open interest for July series at 10,600 Put, open interest at 51.6 lakh, open interest unchanged
- Nifty PCR at 1.50 versus 1.53
- Nifty Bank PCR at 0.99 versus 1.18
- The Indian rupee tumbled for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise following a panic demand for the U.S. dollar coupled with strong capital flight worries.
UBS on HPCL
- Maintained ‘Buy’ with a price target of Rs 460.
- HPCL's share price fall discounts no Ebitda from retail fuels.
- Retail fuel earnings to bounce back with price hikes.
- Believe HPCL's current valuation is undemanding.
IDFC Securities on Media
- JioGigaFiber has the potential to disrupt pricing in the fixed broadband space.
- JioGigaFiber will also provide TV services and might hurt cable, DTH as well.
- Expect commercial launch of JioGigaFiber to begin from the end of this calendar year.
- Expect impact to be more on players who have more exposure to urban India.
- Positive for content owners as consumption is bound to go up.
- Maintain Outperformer on Zee Entertainment, Sun TV Network, Dish TV.
- Neutral on Hathway Cable and Underperformer on Den Networks.
- Shiram Transport cut to Neutral at IDFC Securities
- Wipro upgraded to Undeperform at CLSA