PremiumInvestors are focusing on tightening monetary policy as concerns persist about the omicron variant’s threat to global growth and company earnings. Fed officials said a strengthening economy and higher inflation could lead to earlier and faster rate increases than expected, with some also favoring moves to shrink the balance sheet soon after.
Indian stock market continued with upside momentum on Wednesday, but the pace of the market seems to have reduced and the volatility has started to occur at the higher levels. There is a possibility of consolidation movement or minor weakness on NSE Nifty near 18,000 levels in the next 1-2 sessions, before showing further upside movement from dips. Immediate support for NSE Nifty is placed at 17,760 levels.
Capricorn Energy Plc., formerly Cairn Energy Plc., said on Wednesday it has entered the last leg of the settlement of a controversial tax dispute by withdrawing all lawsuits against the Indian government, which will pave the way for the authorities to refund ₹7,900 crore or approximately $1.06 billion to the British explorer.
Capricorn and Cairn UK Holdings Ltd said in a newspaper announcement that they have entered the final stage in the undertaking with the Indian government “by withdrawing Indian and global appellate and enforcement proceedings". This action is the final necessary step by the firm under the rules of India’s Taxation (Amendment Act) 2021, the announcement said. (Read here)
Shares of Reliance Industries, HDFC Bank, Jet Airways, Future group, Macrotech Developers, among others, will be in focus today.
Stocks in Asia dropped Thursday after a selloff in U.S. technology shares and Treasuries accelerated once Federal Reserve minutes signaled interest-rate hikes may be more aggressive than many had expected.
An MSCI Inc. index of the region’s equities retreated for the third day in four, though declines were more restrained than in the U.S. U.S. contracts fluctuated after the Nasdaq 100 tumbled the most since March as rising Treasury yields added to concerns over growth and profitability. The S&P 500 retreated as traders increased bets U.S. rates will increase at least three times this year.
The yield on the U.S. 10-year note pared some of its gains. It climbed to 1.71%, a level not seen since April. Overnight swaps markets moved to price in an 80% chance of a 25 basis-point hike at the Fed’s meeting in March. The dollar was little changed.
A selloff in Chinese tech companies eased in Hong Kong. Chinese companies listed in the U.S. extended their decline after Tencent Holdings Ltd. cut its stake in an online gaming company, triggering concerns of similar action at other firms amid Beijing’s regulatory crackdown on the sector.
S&P 500 futures rose 0.1%, while Nasdaq 100 futures rose 0.1%.
Japan's Topix index fell 1%, Australia’s S&P/ASX 200 Index fell 1.3%, South Korea's Kospi index lost 0.6%, Hang Seng Index was little changed, and Shanghai Composite Index fell 0.4%.
Overnight, stocks closed lower on Wall Street after minutes from the Federal Reserve’s last meeting raised expectations that the central bank will move faster to raise interest rates to fight inflation.
The S&P 500, The Dow Jones Industrial Average and the Nasdaq fell. Drops in major technology stocks were the biggest weight on the market.
The S&P 500 fell 92.96 points, or 1.9%, to 4,700.58. The Dow Jones Industrial Average fell 392.54 points, or 1.1%, to 36,407.11. The Nasdaq fell 522.54 points, or 3.3%, to 15,100.17.
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