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Here’s a lowdown on top macro triggers that may move market on Thursday.
This report was compiled from agency feeds.
US Fed Raises Rates, Signals Two More Hikes in 2018The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the US central bank's shift from policies used to battle the 2007-2009 financial crisis and recession.
The Fed also upgraded its forecast to four total increases in 2018.
In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 per cent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signalled it would tolerate above-target inflation at least through 2020.
CAD Triples to 1.9% in Q4Higher software exports and remittances have failed to salvage India's current account deficit which rose to 1.4% of GDP pushing the import bill from 0.4% of GDP a year ago on account of rising crude and commodity prices.
India's current account deficit (CAD) rose to $13 billion (Rs 87,800 crore and 1.9 per cent of gross domestic product, or GDP) in the fourth and final quarter (Q4 of 2017-18), compared to $2.6 billion (Rs 17,600 crore and 0.4 per cent of GDP) in the same period of 2016 -17.
For the full financial year (2017-18), the deficit increased to 1.9 per cent of GDP, from 0.6 per cent in 2016-17.
The trade deficit rose to $160 billion, from $112.4 billion in 2016-17.
China Numbers Slow, US Tariff ImminentWith a sharp deceleration in credit growth and the threat of a worsening trade dispute with the U.S., Chinese businesses face an increasingly uncertain outlook.
China’s economy showed signs of losing steam in May, with an unexpected slowdown in factory output and lackluster investment and consumption.
Industrial output rose 6.8 percent in May from a year earlier, versus a projected 7 percent while retail sales expanded 8.5 percent from a year earlier, versus a forecast 9.6 percent.
Meanwhile, the Trump administration, deepening its global trade offensive, is preparing to levy tariffs on tens of billions of dollars of Chinese goods in the coming week, perhaps as early as Friday — a move that is likely to spark heavy retaliation from Beijing.
Time for Oil Buyers' ClubAs oil producers' cartel OPEC playing havoc with prices, India has discussed with China the possibility of forming an 'oil buyers club' that can negotiate better terms with sellers as well as getting more US crude oil to Asia to cut dominance of the oil block.
Production cuts by OPEC have led to international oil prices hitting a four year high last month that forced a Rs 3.8 per litre hike in petrol and Rs 3.38 a litre increase in diesel prices.
Rates started to cool towards month end and retail prices have been cut thereafter.
Meanwhile, Bloomberg reports that Moscow will propose that OPEC and its Russia-led non-OPEC partners in the deal increase their combined production by 1.8 million bpd, starting as early as in July.
Yesterday, oil prices went up again, prompting US President Donald trump to tweet "oil prices are too high, OPEC is at it again.
Not good!"
Gold Prices SlipGold prices inched lower on Thursday as the Federal Reserve forecast two more U.S.
rate increases this year after raising rates on Wednesday, although lingering worries over trade tensions between Washington and Beijing prevented steeper losses.
Spot gold XAU= was down 0.1 per cent to $1,298.61 per ounce at 0047 GMT.
It touched an over one-week low at $1,292.15 an ounce in the previous session.
U.S.
gold futures GCcv1 for August delivery rose 0.1 percent to $1,302.60 per ounce.
In India, on Wednesday, gold prices had climbed by Rs 150 to Rs 31,950 per 10 grams at the bullion market on Wednesday on fresh buying by local jewellers.
India-US to Talk on Trade SoonCommerce and industry minister Suresh Prabhu has said India’s purchases of commercial aircraft and gas from the US would help bridge the trade deficit between the two countries even as they agreed to hold official talks soon to address trade and economic irritants between them.
In 2017-18, India had a $21-billion trade surplus with the US.
His statement assumes significance in the wake of US President Donald Trump accusing India of levying 100% tariff on some American products and threatened to cut off trade ties if America’s trading partners did not cooperate.
FIIs Ditching IndiaHimanshu Srivastava, senior research analyst, Morningstar Advisers, says a lot of money is moving out of India focussed funds and ETFs, including India focussed offshore funds as well which are considered to be long term in nature.
FIIs have been focussing on the short-term trends like how the crude is reacting, how currency is depreciating, what is the relationship between US and North Korea etc.
On the domestic side, they are focussing on general elections, on how the state elections pan out, revival of economic growth and revival of earnings.
With US hiking rates, the dollar may become stronger against the rupee and that does not augur well for FII money in India.
But the market remains more or less stable because of DII investments.
THESE MAY ALSO MOVE MARKETSGovt Listing Air IndiaGovernment of India is open to listing ailing state carrier Air India, reports Reuters quoting a government source, after failing to attract buyers for a 76 per cent stake in the company.
The government was considering several proposals related to reviving the divestment process, the source said, declining to be named before various government ministries finalise their decision.
Cabinet Nod for HDFC Plan to Raise FDI CapitalThe government on Wednesday approved the proposal of HDFC Bank to raise additional capital Rs 24,000 crore by selling equity to foreign investors to fund its business growth.
This includes premium, over and above the previous approved limit of Rs 10,000 crore, that the composite foreign shareholding in the bank should not exceed 74 per cent of the enhanced paid-up equity share capital of the bank.
Adani Wilmar Gets Option to Up Ruchi Soya OfferLenders are giving Adani Wilmar, the highest bidder for bankrupt Ruchi Soya, the option to improve its offer.
Following this, the second-highest bidder, Patanjali Ayurved, will be allowed to better that offer, they said.
This is in contrast with the typical practice of the No.
2 bidder being first asked to match or top the best offer on the table.
Top VideoAther 450 Review Test RideTop Quote'We Bid Aggressively to Get 4-5 Orders, But Ended Up With 16 in UP'FUNDAMENTALSRupee Down: The rupee ended at 67.64 against the US dollar on Wednesday— a level last seen on 29 May,-- down 0.23% from its previous close of 67.49.
Bond Yields Down: The 10-year bond yield ended at 7.93% from its Tuesday’s close of 7.97%.
Stock Market
Market Movers: Fed hikes rates; CAD triples; China losing steam a case for an oil buyers' club
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