US consumer prices are expected to show the biggest annual increase in decades in November, putting pressure on the Fed to tighten policy sharply. Fed Chairman Jerome Powell signals a sharp reduction in asset purchases amid high inflation
RBI may cap rates amid virus risk
The Reserve Bank of India is likely to hold interest rates and postpone policy normalization in a key meeting this week, as the Omicron version of the novel coronavirus poses risks to India’s economic recovery.
There were expectations that the central bank’s Monetary Policy Committee (MPC) would ease the policy corridor between repo and reverse repo at the end of its three-day meeting on Wednesday. However, 60% of the respondents to a Mint poll of bankers and economists expect the RBI to maintain the reverse repo rate – the rate at which banks lend to the RBI against government securities – at 3.35%. Only 40% expect a hike of 15-20 basis points in the reverse repo rate. ,read here,
Oil prices rise on rise in Saudi Arabia’s crude oil prices
Oil prices rose more than $1 a barrel on Monday after top exporter Saudi Arabia raised prices of its crude sold to Asia and the United States, and indirect US-Iran talks on reviving the nuclear deal. as a deadlock was struck.
Brent crude futures for February rose $1.69, or 2.4%, to $71.57 a barrel, while US West Texas Intermediate crude for January was at $67.92 a barrel, up $1.66, or 2.5%.
On Sunday, Saudi Arabia raised January’s official selling prices for all crude grades sold to Asia and the United States by 80 cents from the previous month.
SGX Nifty Trade Flat
SGX Nifty futures traded 11 points higher at 17,246 in opening deals on Monday, indicating a flat start for the Indian benchmark.
Asia stocks backfire as tech stocks weigh in on Omicron
Most Asian stocks fell on Monday led by Chinese technology companies, as investors weighed uncertainties about the Omicron version and watched over US inflation data and a sharper rout from the Federal Reserve. The Treasury surpassed some of Friday’s tally.
Equity benchmarks in Japan fell, while Hong Kong opened weaker, dragged by an index of tech stocks. Losses in Asia were modest compared to declines in the US on Friday. Shares in Mainland China rose after a report that the amount of cash banks can reserve this month could be cut.
Japan’s Topix index fell 0.6%, Australia’s S&P/ASX 200 index fell 0.3%, the Kospi fell 0.2%, the Hang Seng index fell 0.8%, while the Shanghai Composite Index fell 0.3%.
On Friday, major indices closed lower on Wall Street, with the Nasdaq leading the way, with investors betting that a strong jobs report won’t slow the return of support for the Federal Reserve, even as they braced for uncertainty surrounding the Omicron coronavirus pandemic. were battling.
The Dow Jones Industrial Average fell 59.71 points, or 0.17%, to 34,580.08, the S&P 500 fell 38.67 points, or 0.84%, to 4,538.43, and the Nasdaq Composite fell 295.85 points, or 1.92%, to 15,085.47.
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