September 12, 2019 / 3:21 AM / 8 days ago

Morning News Call - India, September 12

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FACTORS TO WATCH

10:00 am: Finance Minister Nirmala Sitharaman to address the Board of Trade in New Delhi.

5:30 pm: Government to release August consumer price inflation data in New Delhi.

5:30 pm: Government to release July industrial production data in New Delhi.

INDIA TOP NEWS

• India’s fuel demand rises 2.8% y/y in August, at 9-month low

India’s fuel demand rose 2.8% in August compared with the same month last year, but were at their lowest level in nine months.

• India wants industry protected in China-backed trade deal - Piyush Goyal

India will only sign a 16-member Asia-Pacific trade pact if its local industry is protected and if the deal would not lead to indiscriminate imports, the Trade Minister Piyush Goyal said on Wednesday.

• India’s monsoon rains 38% above-average this week-weather office

Monsoon rains in India were above average in the week through Wednesday, the weather office said, as soybean and cotton growing central parts of the country received heavy rainfall, damaging crops in some pockets.

• ONGC considers buying out rest of petrochemical project

Oil and Natural Gas Corp (ONGC) plans to buy out the rest of a western Indian petrochemical project it does not already own and launch a public offering if it fails to find a strategic partner for it, its head of finance said on Tuesday.

• India, South Korea win most foreign inflows into Asian bonds in August

Foreign flows into Asian bonds were mixed in August, with India and South Korean bonds securing most of the regional inflows thanks to their high returns, while concern over slowing economic growth and the U.S.-China trade dispute prompted outflows elsewhere.

• Indian police kill militant behind attack on Kashmir trader’s family

Security forces in Indian Kashmir shot dead on Wednesday a suspected member of a Pakistan-based militant group who was accused of attacking the family of a fruit trader, the state police chief said.

GLOBAL TOP NEWS

• U.S., China grant trade concessions as fresh talks loom

U.S. President Donald Trump on Wednesday welcomed China’s decision to exempt some U.S. anti-cancer drugs and other goods from its tariffs and announced a short delay to scheduled tariff hikes on billions worth of Chinese goods.

• ECB to turn stimulus taps back on to prop up ailing economy

The European Central Bank is set to unveil fresh stimulus measures to prop up the ailing euro zone economy, but its exact moves are far from certain and a decision that underwhelms markets risks pushing up borrowing costs.

• Japan’s machinery orders slip as trade gloom hits business spending

Japan’s machinery orders slipped in July, albeit at a slower-than-expected pace, as slowing global demand and protracted trade tensions hit corporate investment in the world’s third-largest economy.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.3% higher at 11,075.00.

• The Indian rupee is expected to open higher against the dollar after U.S. President Donald Trump postponed an increase in tariffs on $250 billion of Chinese shipments by two weeks, boosting demand for Asian currencies.

• Indian government bonds are likely to trade largely unchanged before the release of August inflation data due after market today. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.65%-6.70% today.

GLOBAL MARKETS

• Wall Street moved higher on Wednesday, led by tariff-sensitive technology and industrial stocks after China extended an olive branch ahead of next month’s trade negotiations with the United States.

• Asian stocks hit a six-week high on hopes for a thaw in U.S.-China trade frictions and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks.

• An exchange of olive branches between Washington and Beijing on trade pushed the dollar to a six-week high against the safe-haven yen and also supported the risk-sensitive currencies of China, Australia and South Korea.

• U.S. Treasury yields advanced on Wednesday for a third straight day, moving in lock step with the euro zone bond market, amid uncertainty about Thursday’s European Central Bank meeting, which could prove less aggressive in easing monetary policy.

• Oil prices jumped, bouncing back from heavy losses in the previous session, buoyed by moves to ease trade tensions between Washington and Beijing and a drop in U.S. crude inventories to the lowest in nearly a year.

• Gold prices fell as equities gained on improving risk sentiment buoyed by signs of gradual de-escalation in U.S.-China trade tensions, while investors eyed European Central Bank’s meeting for cues on monetary policy easing.

For additional data:

India govt bond market volumes

Stock market reports

Non-deliverable forwards data

Corporate debt stories [IN CORPD]

Local market closing/intraday levels [IN SNAPSHOT]

Monthly inflows [INFLOWS RTRS TABLE IN]

$1 = 71.50 Indian rupees Compiled by Benny Thomas in Bengaluru

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