SGX Nifty down 35 points; here\'s what changed for market while you were sleeping

SGX Nifty down 35 points; here's what changed for market while you were sleeping

SGX Nifty down 35 points; here's what changed for market while you were sleeping
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Nifty futures on the Singapore Exchange traded 35 points, or 0.30 per cent lower at 11,496.50 , in signs that Dalal Street was headed for a negative start on Wednesday.

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India 10-year bond yield fell 0.02 per cent to 6.029 after trading in 6.01-6.04 range

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Domestic stocks may open lower on Wednesday, tracking a major military buildup on India-China border and mixed cues from other Asian markets, even as investors globally awaited the outcome of the US Fed policy review scheduled for later in the day.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 35 points, or 0.30 per cent lower at 11,496.50 , in signs that Dalal Street was headed for a negative start on Wednesday.

Tech View: Nifty50 takes support at 20-DMA
Nifty50 reclaimed the 11,500 level on Tuesday and formed a bullish candle on the daily chart. Analysts said levels near the recent swing high of 11,585 may continue to create hurdles for the index in the immediate term. The 20-day moving average, whose value stands at 11,443, would keep offering support to the index, as was the case on Tuesday, analysts said.

Asian markets mixed ahead of Fed meet
Japan's Nikkei 225 index fell 0.10 per cent, or 23.73 points, to 23,431.16. In Hong Kong, Hang Seng added 0.37 per cent, or 91.20 points, to 24,823.96. China's Shanghai Composite index dipped 0.08 per cent, or 2.51 points, to 3,293.17, while the Shenzhen Composite index on China's second exchange eased 0.16 percent, or 3.45 points, to 2,201.91.

Oil gains as hurricane shuts US output
Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted US offshore oil and gas production and an industry report showed a big drop in US crude stockpiles. Brent crude was trading up 15 cents, or 0.4 per cent, at $40.68 a barrel, while US crude gained 18 cents, or 0.5 per cent, to $38.46 a barrel. Both contracts rose by more than 2 per cent on Tuesday.

US stocks rise with Fed meeting in focus
US stocks finished higher as Wall Street paid close attention to a key meeting by the Federal Reserve.On Tuesday, the Dow Jones Industrial Average rose 2.27 points, or 0.01 per cent, to 27,995.60. The S&P 500 climbed 17.66 points, or 0.52 per cent, to 3,401.20. The Nasdaq Composite Index jumped 133.67 points, or 1.21 per cent, to 11,190.32.

FIIs buy Rs 1,171 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,170.89, data available with NSE suggested. DIIs were net sellers to the tune of Rs 895.63 crore, data suggests.

MONEY MARKETS
Rupee: The rupee pared early gains to settle 16 paise lower at 73.64 against the US dollar on Tuesday due to dollar buying by banks and oil importers. The rupee had opened higher at 73.33 but later lost ground to touch a low of 73.72 due to high dollar demand.

10-year bonds: India 10-year bond yield fell 0.02 per cent to 6.029 after trading in 6.01-6.04 range

Call rates: The overnight call money rate weighted average stood at 3.43 per cent, according to RBI data. It moved in a range of 1.80-4.00 per cent.

DATA/EVENTS TO WATCH
  • Japan Balance of Trade AUG (05:20 am)
  • Australia New Home Sales MoM AUG (05:30 am)
  • UK Inflation Rate YoY AUG (11.30 am)
  • Euro Area Balance of Trade JUL (02:30 pm)
  • US MBA 30-Year Mortgage Rate 11/SEP (04:30 pm)
  • US NAHB Housing Market Index SEP (07:30 pm)
  • US EIA Crude Oil Stocks Change 11/SEP (08:00 pm)
  • US Fed Interest Rate Decision (11:30 pm)
  • US FOMC Economic Projections (11.30 pm)

MACROS
Fed policy outcome today... Armed with a new interest rate strategy, the Federal Reserve will seek to reassure the US economy rattled by the coronavirus downturn as it wraps up its policy meeting on Wednesday. The two-day event concludes amid a renewed push by a top lawmaker in Washington to agree on an additional spending bill to prop up the economy following a historic collapse in GDP in the second quarter and data showing a worryingly high rate of new layoffs, AFP reported.

India's exports shrinks in Aug... India’s exports declined for the sixth straight month in August, falling 12.66% on year to $22.7 billion, pulled down by lower shipments of petroleum, leather, engineering goods and manmade yarns. A surge in gold imports led to a trade deficit of $6.77 billion in August, the widest in five months, data released by the commerce and industry ministry showed on Tuesday. The trade gap was $4.83 billion in July.

ADB projects India contraction... The Asian Development Bank expects India's economy to contract 9% in FY21, worse than its earlier forecast of 4% shrinkage three months ago, as the coronavirus pandemic weighs on economic activity and consumer sentiment. It, however, forecast a strong recovery for India's economy in FY22 with an 8% growth in GDP.

RBI rate cut hopes diminish... Expectations of further interest rate cuts in the current fiscal year are fading fast as consumer price inflation (CPI) has stubbornly remained above 6% for eight of the last nine months. Economists believe the monetary policy committee (MPC) of the RBI may not be able to do much on rates this year even as the central bank faces a challenging task to ensure government bond yields don’t spike sharply despite record borrowing by the sovereign.

China, India add troops in border buildup… China is believed to have brought forward more troops in the past week along the LAC in Ladakh, taking its total troop deployment to approximately 52,000. Of these, 10,000 troops have been deployed on the southern bank of the Pangong Tso that has witnessed hectic military activity since the manoeuvres of August 29-30. These details form part of a latest comprehensive assessment by security forces on the “eyeball to eyeball” deployment of Indian and Chinese troops in Ladakh. The report notes that Chinese aggressive moves have been met with “mirror deployment” on the Indian side.

DoT to seek legal view on AGR dues... DoT is likely to seek legal opinion from the solicitor general on whether telcos need to make an upfront payment of 10% of their AGR dues this financial year, amid different interpretations of the Supreme Court order by the two sides. Telcos such as Vodafone Idea and Bharti Airtel are of the view that they have already paid more than 10% of their total AGR dues, which include licence fees, spectrum usage charge, interest and penalties, and that their first instalment falls due only in the finanial year ending March 2022.

India plans law to ban cryptocurrency… India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market. The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media. The government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, officials said.

Fund managers say bull market on… Bank of America Securities’ latest fund manager survey showed more investors are now saying that a new bull market has begun. The survey, which took place between September 3 and 10 and saw 199 participants who together manage $601billion, showed that 58% of fund managers believe that a new bull market has started compared to 25% who said the same in May. About 18% of fund managers surveyed are overweight equities but far from being dangerously bullish, said the BofA report.

Dalio says dollar status under threat… The dollar’s decades-long position as the global reserve currency is in jeopardy because of steps the U.S. has taken to support its economy during the Covid-19 pandemic, according to Ray Dalio, founder of hedge fund giant Bridgewater Associates. While equities and gold benefited from the trillions of dollars in fiscal spending and monetary injections, those efforts are debasing the currency and have raised the possibility that the US will go too far in testing the limits of government stimulus, Dalio said in an interview.

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1 Comment on this Story

Krishan Kumar Totlani2 hours ago
US markets ended higher, Asian markets trading mixed & SGX nifty is down over 35 points indicate the flat start with negative bias.

SGX Nifty down 35 points; here\'s what changed for market while you were sleeping

'I up-played it': Trump on his coronavirus response, despite saying otherwise on tape

'I up-played it': Trump on his coronavirus response, despite saying otherwise on tape

Trump also reiterated his assertion that the virus would eventually disappear, predicting a "herd mentality" that would develop, which was likely meant to be "herd immunity."

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By Dartunorro Clark

President Donald Trump told a voter that he did not downplay the coronavirus in the early days of his administration's Covid-19 response — even though he has been heard on tape saying he did — during an ABC News town hall Tuesday.

"If you believe it's the president's responsibility to protect America, why would you downplay a pandemic that is known to disproportionately harm low-income families and minority communities?" a voter asked Trump.

Trump responded: "Yeah, well, I didn't downplay it. I actually, in many ways, I up-played it in terms of action." The voter appeared to try to follow up and remind the president that he acknowledged having downplayed the threat of the coronavirus in a taped interview with journalist Bob Woodward earlier this year.

The town hall, hosted by George Stephanopoulos in Philadelphia, was one of the rare occasions when Trump has sat down for questions with a news network other than Fox News. It is also one of the few times the president has had to interact with undecided voters in a moderated setting. The topics ranged from health care to the pandemic to policing, among other areas. Trump and Stephanopoulos, as well as voters, who wore masks, were socially distanced.

Trump is in a bare-knuckled re-election battle against former Vice President Joe Biden, the Democratic nominee, while his poll numbers are sagging as he continues to get low marks from voters for how he handled the response to the virus.

"I wanted to always play it down. I still like playing it down, because I don't want to create a panic," Trump said in a call with Woodward on March 19, according to an audio clip posted Wednesday on The Washington Post's website. The newspaper obtained a copy of the book, "Rage," which was released this week.

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In the same interview, Trump acknowledged that the disease was more deadly than he had admitted publicly.

"Now it's turning out it's not just old people, Bob. But just today, and yesterday, some startling facts came out. It's not just old, older," Trump said, according to an audio clip, and then added, "young people, too, plenty of young people."

During the ABC town hall, Trump continued to blame China and to misrepresent his administration's response to the virus.

"We've worked very hard on the pandemic," Trump told a conservative voter with an underlying health condition who criticized the administration's response. "We've worked very hard. It came off from China. They should have never let it happen."

Trump reiterated his claim that the virus would eventually disappear, predicting that a "herd mentality" would develop, which he likely meant to be "herd immunity."

Trump was pressed by a local pastor, who is Black, about race. Trump was asked when America was ever "great," referring to his slogan, "Make America Great Again," which the voter said "pushes us [Black Americans] back to a time in which we cannot identify with such greatness." He also pressed Trump about addressing systemic racism.

"And we have not been seeing a change, quite frankly, under your administration, under the Obama administration, under the Bush, under the Clinton, the very same things happen, the same systems and cycles continue to ensue," the voter said.

Trump responded: "I hope there's not a race problem. I can tell you there's none with me."

The president then pivoted to discussing his poll numbers among minorities and Black and Latino unemployment numbers during his administration. Trump has been struggling among Black voters, who overwhelmingly support Biden, according to polls.

Trump was pressed later about the killings of Black Americans by police and how they are three times more likely to be killed during encounters with officers. He downplayed systemic racism in law enforcement, saying the deaths of George Floyd in Minnesota and Breonna Taylor in Kentucky and the recent shooting of Jacob Blake in Wisconsin were "tragic events," and he largely defended police.

"I can only say this, that the police in this country have done generally a great job," Trump said.

One of the testiest moments was a discussion of health care. A voter with a pre-existing condition pressed the president about his health care plan and his efforts to repeal the Affordable Care Act, which protected pre-existing conditions.

Trump claimed that he is preserving coverage for pre-existing conditions, even as his administration argues against Obamacare in court. That prompted Stephanopoulos to jump in to fact-check the president in real time.

"You've been trying to strike down pre-existing conditions," Stephanopoulos said. "You're striking down the whole law."

Trump continues to claim that he has a health care plan, despite the difficulty of getting legislation through the Democratic-controlled House, which has tried to safeguard the Affordable Care Act. Health care is a top issue for voters in the election.

"I have it all ready, and it's a much better plan for you, and it's a much better plan," Trump said, without giving details.

Trump also pushed back at a voter who asked whether he would be "more presidential" in his second term if he is re-elected.

"I'm fighting a battle. It's a big battlefield, and I have a lot of forces against me," Trump said. "Sometimes you don't have time to be totally, as you would say, presidential. You have to get things done."