AUTO REFRESH ON Asian Market check Asian shares were on back foot on Tuesday as an unexpected drop in China’s exports heightened worries about the global economy while the British pound braced for a showdown in parliament over the government’s Brexit plan. MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat in early trade while Japan's Nikkei fell 0.7 per cent after a market holiday on Monday.
A host of global factors such as concerns over second British parliamentary vote on Brexit deal, US government shutdown and crude oil are likely to impact market sentiment on Tuesday. On the domestic front, markets are likely to take cue from December quarter earnings, rupee movement and CPI data released post market hours on Monday. This apart, public sector banks will be in focus as the Finance Ministry has asked these banks to gradually bring down the government's equity to 52 per cent.
British Prime Minister Theresa May will force a second parliamentary vote on her Brexit deal despite facing defeat, The Sun reported on Monday. The British parliament is widely expected to vote against May’s deal on Tuesday, opening up outcomes ranging from a disorderly divorce to reversing Brexit.
US President Donald Trump on Monday rejected a Republican call for temporarily reopening shuttered US government agencies in order to encourage negotiations with Democrats on border security issues, as a partial government shutdown limped through its 24th day.
The rupee Monday plunged by 43 paise to close at nearly one-month low of 70.92 against the US dollar amid weak industrial output growth data, fall in domestic equity markets and sustained foreign fund outflows.
SGX Nifty
The Nifty futures on Singapore Exchange (SGX) were trading at 10,813, up 44 points or 0.41 per cent in early trade.
Earnings on Tuesday
Over 15 BSE companies including India Grid Trust, Multi Commodity Exchange of India, Trident, Tinplate Company of India are slated to announce their December quarter earnings later in the day.
Macro data
Consumer price inflation fell to its lowest in 18 months in December 2018 following a persistent decline in food prices and a drop in fuel costs. The easing price pressures, together with moderating growth, may prompt a rethink on interest rates when the Monetary Policy Committee meets next month. Retail inflation fell to 2.19 percent in December compared with 2.3 percent in November, government data released on Monday showed.
Global Markets
Asian shares were on back foot on Tuesday as an unexpected drop in China’s exports heightened worries about the global economy while the British pound braced for a showdown in parliament over the government’s Brexit plan.
MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat in early trade while Japan's Nikkei fell 0.7 per cent after a market holiday on Monday.
World stock indexes fell on Monday after a surprise contraction in Chinese trade reignited fears of a sharper slowdown in global growth and caused investors to sell riskier assets.
The Dow Jones Industrial Average fell 86.11 points, or 0.36 per cent, to 23,909.84, the S&P 500 lost 13.65 points, or 0.53 per cent, to 2,582.61 and the Nasdaq Composite dropped 65.56 points, or 0.94 per cent, to 6,905.92.
Oil Prices
Oil prices inched up on Tuesday amid supply cuts by producer club OPEC and Russia, although the darkening economic outlook capped gains.
US West Texas Intermediate (WTI) crude futures were at $50.78 per barrel, up 27 cents, or 0.5 per cent, from their last settlement. International Brent crude oil futures had yet to trade.
(with Reuters input)
(with Reuters input)