Markets may continue to strengthen; Future Group, SpiceJet, SBI Card in focus

Global stocks tumbled from record peaks as corporate earnings reports stalled their rally in a stark reminder of supply chain woes, while investors also looked to see if central banks consider tightening monetary policy ahead of time. can do.

MSCI’s gauge of world stocks, the ACWI, sank 0.05% in early trade Thursday, with Japan’s Nikkei leading the way, down 1.1%. Mainland Chinese shares slipped 0.2% while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%.

Overnight on Wall Street, the S&P 500 lost 0.51% from its all-time high hit Tuesday, though the Nasdaq changed little, thanks to strong earnings from Microsoft and Google parent Alphabet.

Back home, the Amazon-Future battle over the Reliance Retail deal has again reached the Delhi High Court, with Future Group seeking a stay on an interim order passed by the Singapore International Arbitration Center (SIAC) on October 21. According to a regulatory filing on Wednesday, the promoters of Future Group and Future Coupons Pvt. Ltd has also urged the High Court to set aside the SIAC order.

SpiceJet Merchandise Pvt. According to a report in Mint, the subsidiary of no-frills carrier SpiceJet Ltd on Wednesday agreed to make pending payments to public sector lender Canara Bank in connection with the two-year-old acquisition.

Major companies such as Bajaj Finserv, Adani Green Energy, Adani Total Gas, NPTC, SBI Cards & Payment Services, DLF, InterGlobe Aviation, Marico, Tata Power, Gujarat Gas and AU Small Finance Bank will release their September quarter earnings today.

With global supply disruptions raising concerns about inflation, investors are keeping a close eye on whether the world’s central banks will look to ease their liberal pandemic stimulus measures more quickly.

The US Federal Reserve is expected to announce almost unanimously to reduce its bond purchases at its policy meeting next week. The two-year US Treasury yield rose to 0.528% and last stood at 0.501%. It was around 0.26% in early October. Conversely, long-term yields fell partly because a tighter monetary policy is likely to contain inflation.

Yields on 10-year US notes fell to 1.545%, compared to a five-month peak of 1.705% a week earlier. Also helping to dampen global bond yields was a fall in UK gilts yields, as the UK government lowered its borrowing forecast more than expected. On Wednesday, the 10-year gilt yield declined 12.8 basis points, the biggest fall since March 2020, at 0.982%.

Other major currencies were halted later in the day ahead of policy announcements by the Bank of Japan and the European Central Bank, although no major changes are expected. The yen stood at 113.73 per dollar, having touched its four-year low of 114.695 last week, while the euro changed hands at $1.1600.

Oil prices fell after a higher-than-expected rise in US crude stockpiles, even as fuel inventories slid and tanks at the nation’s largest storage facility emptied further. Higher-than-expected gains in US crude stocks prompted some investors to offload long positions after strong gains in recent weeks pushed both Brent and US crude benchmarks to multi-year highs.

Brent fell 1.8% to $83.07 a barrel, from Monday’s seven-year high of $86.70, while US crude was at $81.25 a barrel, down 1.7%, and at $85.41 a barrel on Monday, a seven-year high. Was.

(Reuters contributed to the story)