08:50 (IST)
Hopes over on outcome of Bank of Japan meeting
Deepak Jasani, Head Of Research, HDFC Securities said, "Indian markets could open in the positive today following positive Asian markets today and higher US markets on Friday.
Indian benchmark indices ended on negative note after a volatile session on 24 April. This was after two days of gains. Nifty closed down 159.50 points or 1.71% at 9154.40. For the week, the index was down 0.8 percent, its first weekly drop after gaining for back-to-back weeks. Technically, with the Nifty correcting on Friday, traders will need to watch if the Nifty index can now hold above the immediate supports of 8946-8908 early next week for the bulls to regain control. Else, the Nifty could resume its intermediate downtrend. On upmoves, 9314 can provide resistance
"US stock indexes closed higher on Friday but logged weekly losses as investors digested economic data, mixed corporate results, and the latest economic aid package from Congress to combat the COVID-19 pandemic. For the week, the Dow fell 1.9%, the S&P 500 declined 1.3% and the Nasdaq retreated 0.2%.
"Oil futures booked a third gain in a row after their recent plunge, but ended down sharply for the week. West Texas Intermediate crude for June delivery gained 44 cents, or 2.7%, to settle at $16.94 a barrel, but the most-active contract notched a weekly drop of 32%, its worst weekly fall on record based on the most-active contract. In economic data, U.S. orders for durable goods slumped 14.4% in March. A final reading on consumer sentiment from the University of Michigan for April came in at 71.8 from 89.1 in March.
"The US Fed meets Tuesday and Wednesday, and while it’s not expected to take any new action, it will likely discuss the many programs it quickly rolled out to support the economy and provide liquidity. Asian shares inched higher on Monday ahead of a busy week for earnings and central bank meetings, with much talk the Bank of Japan (BOJ) will announce more stimulus steps," Jasani said.
08:48 (IST)
US economy faces historic shock, with 16% joblessness possible, says Trump adviser
The shuttering of the US economy due to the coronavirus pandemic is a shock of historic proportions that will likely push the national unemployment rate to 16% or higher this month and require more stimulus to ensure a strong rebound, a White House economic adviser said on Sunday.
“It’s a really grave situation,” President Donald Trump’s adviser, Kevin Hassett, told the ABC program “This Week.” "This is the biggest negative shock that our economy, I think, has ever seen. We’re going to be looking at an unemployment rate that approaches rates that we saw during the Great Depression” of the 1930s, Hassett added.
08:46 (IST)
Govt brushes off officers' proposal for wealth, coronavirus tax on super rich
A group of Indian Revenue Service officers have recommended taxing the super rich, and foreign companies, to help pay for the coronavirus economic fallout, but the government brushed off the idea, saying it did not reflect official views.
Some 50 officers of the Indian Revenue Service (IRS) recommended raising the highest tax rate to 40 percent for people with annual income above Rs 1 crore ($131,130) or a wealth tax for those with net worth of Rs 5 crore or more in a report sent to the Central Board of Direct Taxes (CBDT) and shared on Twitter on Saturday.
In a tweet late on Sunday the Income Tax Department, governed by the CBDT, said the report did not reflect the official views of the CBDT and the Finance Ministry. It said an inquiry was being launched into why the report was shared with the public.
08:44 (IST)
Oil futures open lower in electronic trading
US oil futures dipped in electronic trading Sunday evening, extending losses from last week that marked the eighth week of losses out of the last nine.
Trading was extremely volatile last week, in an extension of the selling that has dominated trading since early March as demand collapsed 30 percent due to the pandemic. Global production cuts have not kept pace with the collapse in demand.
US West Texas Intermediate CLc1 futures were down 32 cents to $16.62 a barrel as of 6:15 PM ET (2215 GMT), while Brent futures LCOc1 rose 12 cents, or 0.6 percent, to settle at $21.56 a barrel.
Oil futures marked their third straight week of losses last week, with Brent ending down 24 percent and WTI off around 7 percent.
08:43 (IST)
Asian shares inch higher ahead of busy week for earnings, central bank meetings
Asian shares inched higher on Monday ahead of a busy week for earnings and central bank meetings, with much chatter the Bank of Japan (BOJ) will announce more stimulus steps.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent in early trade, having shed 2.6 percent last week. Japan's Nikkei gained 1.1 percent, while E-Mini futures for the S&P 500 ESc1 dipped 0.4 percent.
There is considerable speculation the BOJ will pledge to buy unlimited amounts of government bonds, removing the current target of 80 trillion yen per year, even though it has not been near reaching it.
It is also expected to raise purchases of corporate and commercial debt, and perhaps launch a new loan programme to help companies struggling with cash flow.
Stock Market today LIVE Updates: Bourses to open on positive note, SGX Nifty suggests gap-up opening for indices
Sydney: Asian shares inched higher on Monday ahead of a busy week for earnings and central bank meetings, with much chatter the Bank of Japan (BOJ) will announce more stimulus steps.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent in early trade, having shed 2.6 percent last week. Japan's Nikkei gained 1.1 percent, while E-Mini futures for the S&P 500 ESc1 dipped 0.4 percent.
There is considerable speculation the BOJ will pledge to buy unlimited amounts of government bonds, removing the current target of 80 trillion yen per year, even though it has not been near reaching it.
It is also expected to raise purchases of corporate and commercial debt, and perhaps launch a new loan programme to help companies struggling with cash flow.
The Federal Reserve and the European Central Bank meet later in the week, with the latter likely to do more.
“For the Fed, no further developments on QE or interest rates are expected, but we expect it to underline that its policies will be in place indefinitely to support the economy,” wrote analysts at ANZ in a note.
“We expect the ECB to raise the size of its emergency bond buying package (PEPP) by around 500 billion euros to 1.250 trillion and to continue pressing for a sizeable fiscal stimulus.”
On the data front, the United States and European Union release GDP for the first quarter and the influential USISM survey on manufacturing.
Earnings season will be in full swing with around 173 companies in the S&P 500 reporting this week, including Apple, Amazon, Facebook, Microsoft, Caterpillar, Ford, GE and Chevron.
Analysts expect a 15 percent decline in S&P 500 first-quarter earnings, with profits for the energy sector estimated to slump more than 60 percent, raising fears of debt defaults, layoffs and possible bankruptcies.
Bond markets remain well supported by the truly massive easing under way from major central banks, which have seen US 10-year yields US10YT=RR trade around 0.6 percent for a week or more.
The dollar has been generally bid thanks to its safe haven status as the world’s most liquid currency at times of stress, though moves have been relatively mild in recent weeks.
The dollar index touched a three-week high at 100.860 on Friday before easing back to 100.250 on Monday.
The euro was steady at $1.0816, having hit a one-month low of $1.0725 on Friday, while the dollar was flat on the yen at 107.44 JPY.
Gold held at $1,723 per ounce, after gaining 2.5 percent last week.
Oil prices looked set for another volatile week, having fallen in eight of the last nine weeks. US crude even traded below zero last week as demand collapsed 30 percent due to the pandemic, leaving more oil than could be stored.
Brent crude LCOc1 futures firmed 45 cents to $21.89 a barrel, while US crude CLc1 fell 52 cents to $16.42. ]
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