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10 things you need to know before the opening bell on October 18

Updated : 2019-10-18 08:13:42

Indian shares are expected to open lower today amid cautious trades in global markets in the wake of Q2 earnings season. Asian shares traded marginally higher after the Brexit deal agreed by the UK and the European Union, but concern about the Chinese economy capped gains. We bring to you 10 vital things to know for better trade.

1. Asia: Asian stocks edged higher on Friday, tracking the global lift in sentiment after the UK and the European Union struck a long-awaited Brexit deal, but concern about the Chinese economy is likely to cap gains with data expected to show weaker growth.MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent in early trade, echoing Wall Street's small gains. Australian shares were off 0.6 percent, while Japan's Nikkei added 0.5 percent. (Image: Reuters)
1. Asia: Asian stocks edged higher on Friday, tracking the global lift in sentiment after the UK and the European Union struck a long-awaited Brexit deal, but concern about the Chinese economy is likely to cap gains with data expected to show weaker growth.MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent in early trade, echoing Wall Street's small gains. Australian shares were off 0.6 percent, while Japan's Nikkei added 0.5 percent. (Image: Reuters)
2. US: Wall Street rose as upbeat earnings from Netflix and Morgan Stanley affirmed a strong start to the U.S. reporting season, while the dollar fell against the euro as the common currency got a lift on the long-awaited Brexit deal. The Dow Jones Industrial Average rose 23.9 points, or 0.09 percent, to 27,025.88. The S&P 500 gained 8.26 points, or 0.28 percent, to 2,997.95 and the Nasdaq Composite added 32.67 points, or 0.4 percent, to 8,156.85. (Image: Reuters)
2. US: Wall Street rose as upbeat earnings from Netflix and Morgan Stanley affirmed a strong start to the U.S. reporting season, while the dollar fell against the euro as the common currency got a lift on the long-awaited Brexit deal. The Dow Jones Industrial Average rose 23.9 points, or 0.09 percent, to 27,025.88. The S&P 500 gained 8.26 points, or 0.28 percent, to 2,997.95 and the Nasdaq Composite added 32.67 points, or 0.4 percent, to 8,156.85. (Image: Reuters)
3. Markets At Close On Thursday: Indian shares ended over 1 percent higher on Thursday on reports that UK PM Boris Johnson has approved the Brexit deal. Johnson said that UK and EU have agreed 'great new deal and urged Parliament to approve it at the weekend. The Sensex ended the day with 453 points higher at 39,052, while the broader Nifty50 index added 122 points to end the day at 11,586. All sectoral indices, except Nifty IT, were trading in green. Meanwhile, foreign institutional investors bought 1,159 crores in the cash market while domestic institutional investors sold 512 crores. (Image: Reuters)
3. Markets At Close On Thursday: Indian shares ended over 1 percent higher on Thursday on reports that UK PM Boris Johnson has approved the Brexit deal. Johnson said that UK and EU have agreed 'great new deal and urged Parliament to approve it at the weekend. The Sensex ended the day with 453 points higher at 39,052, while the broader Nifty50 index added 122 points to end the day at 11,586. All sectoral indices, except Nifty IT, were trading in green. Meanwhile, foreign institutional investors bought 1,159 crores in the cash market while domestic institutional investors sold 512 crores. (Image: Reuters)
4. Crude Oil: Oil prices rose about 1 percent on Thursday after draws in US fuel inventories, but gains were capped by a larger-than-expected rise in crude stockpiles and a series of weak economic figures. Global benchmark Brent crude rose 49 cents, or 0.8 percent, to settle at $59.91 a barrel. US WTI crude gained 57 cents, or 1.1 percent, to settle at $53.93 a barrel. (Image: Reuters)
4. Crude Oil: Oil prices rose about 1 percent on Thursday after draws in US fuel inventories, but gains were capped by a larger-than-expected rise in crude stockpiles and a series of weak economic figures. Global benchmark Brent crude rose 49 cents, or 0.8 percent, to settle at $59.91 a barrel. US WTI crude gained 57 cents, or 1.1 percent, to settle at $53.93 a barrel. (Image: Reuters)
5. Currency: The rupee darted up 27 paise to close at 71.16 against the US dollar on Thursday, led by optimism over the Brexit deal amid softening crude oil prices. Persistent foreign fund inflows and robust buying in domestic equity markets added to the momentum, forex traders said. At the interbank foreign exchange market, the rupee opened at 71.38 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.14 and a low of 71.47, before finally ending at 71.16, up 27 paise over its previous close. (Image: Reuters)
5. Currency: The rupee darted up 27 paise to close at 71.16 against the US dollar on Thursday, led by optimism over the Brexit deal amid softening crude oil prices. Persistent foreign fund inflows and robust buying in domestic equity markets added to the momentum, forex traders said. At the interbank foreign exchange market, the rupee opened at 71.38 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.14 and a low of 71.47, before finally ending at 71.16, up 27 paise over its previous close. (Image: Reuters)
6. Brexit Draft Deal Done: Jean-Claude Juncker, the president of the European Commission, has confirmed that a Brexit deal has been agreed between the European Union and the United Kingdom. This paves the way for Britain to walk away from the European Union. The deal still needs approval from the UK parliament, the EU member states,  and their respective parliaments. Juncker has also urged the European parliament to sign off on the deal. (Stock Image)
6. Brexit Draft Deal Done: Jean-Claude Juncker, the president of the European Commission, has confirmed that a Brexit deal has been agreed between the European Union and the United Kingdom. This paves the way for Britain to walk away from the European Union. The deal still needs approval from the UK parliament, the EU member states,  and their respective parliaments. Juncker has also urged the European parliament to sign off on the deal. (Stock Image)
7. FMCG To Witness Softer Growth: The fast-moving consumer goods (FMCG) manufacturers would witness even softer growth in the October-December 2019 period. Projections by market research firm Nielsen indicate that growth in Q4CY19 could be in the range of 6.5 to 7.5 percent. This can be compared to the 7.6 percent growth that the FMCG sector saw in Q3CY19. Nielsen has retained its annual growth forecast for 2019 for the FMCG market at 9-10 percent. In the last quarter, Nielsen had revised lower its earlier growth forecast of 11-12 percent. (Image: Reuters)
7. FMCG To Witness Softer Growth: The fast-moving consumer goods (FMCG) manufacturers would witness even softer growth in the October-December 2019 period. Projections by market research firm Nielsen indicate that growth in Q4CY19 could be in the range of 6.5 to 7.5 percent. This can be compared to the 7.6 percent growth that the FMCG sector saw in Q3CY19. Nielsen has retained its annual growth forecast for 2019 for the FMCG market at 9-10 percent. In the last quarter, Nielsen had revised lower its earlier growth forecast of 11-12 percent. (Image: Reuters)
8. Goldman Sachs On Economic Crisis: The consumption slump, a major challenge afflicting the economy, cannot be attributed to the NBFC crisis as it predates the first default by infra lender IL&FS, says a brokerage, which has also slashed growth forecast to 6 percent with a downward bias. Many people attribute the deepening slowdown in consumption to the NBFC crisis that began in September 2018 when IL&FS went belly up following which consumption financing--a forte of shadow banks, stopped with a chill in disbursements by these players. According to Prachi Mishra, the chief economist at Goldman Sachs, her analysis indicates that consumption has been falling since January 2018, which is much before the end August 2018 default by IL&FS which triggered the liquidity crisis for NBFCs. (Image: Reuters)
8. Goldman Sachs On Economic Crisis: The consumption slump, a major challenge afflicting the economy, cannot be attributed to the NBFC crisis as it predates the first default by infra lender IL&FS, says a brokerage, which has also slashed growth forecast to 6 percent with a downward bias. Many people attribute the deepening slowdown in consumption to the NBFC crisis that began in September 2018 when IL&FS went belly up following which consumption financing--a forte of shadow banks, stopped with a chill in disbursements by these players. According to Prachi Mishra, the chief economist at Goldman Sachs, her analysis indicates that consumption has been falling since January 2018, which is much before the end August 2018 default by IL&FS which triggered the liquidity crisis for NBFCs. (Image: Reuters)
9. Gems, Jewellery Exports May Decline This Year: The overall gems and jewellery exports is expected to decline of 5-10 percent in this financial year on the back of US-China trade war, protests in Hong Kong and the implementation of VAT in the Middle East, Gems and Jewellery Export Promotion Council (GJEPC) said.
9. Gems, Jewellery Exports May Decline This Year: The overall gems and jewellery exports is expected to decline of 5-10 percent in this financial year on the back of US-China trade war, protests in Hong Kong and the implementation of VAT in the Middle East, Gems and Jewellery Export Promotion Council (GJEPC) said. "We saw a decline of 5.70 percent dip in exports at Rs 1,32,170.32 crore from April-September 2019, against Rs 1,40,158.83 crore during the same period of FY19. The exports have been impacted due to weak demand from the US market, the continuing trade war between the US and China," GJEPC vice chairman Colin Shah told reporters here. He said, looking at these trends the overall gems and jewellery exports are expected to decline by 5-10 percent in this financial year compared to 2018-19. (Image: Reuters)
10. Reports On Microlenders Growing Loan Book : Microlenders are focusing more on growing their loan book size by offering a higher quantum of loans to the same borrowers, and overlooking geographical deepening, a report said on Thursday. The national average ticket size of microfinance loans has been steadily increasing with an increase of 12 percent in June 2019, while the live customer base is growing at a declining pace, credit information company CRIF Highmark said. 
10. Reports On Microlenders Growing Loan Book : Microlenders are focusing more on growing their loan book size by offering a higher quantum of loans to the same borrowers, and overlooking geographical deepening, a report said on Thursday. The national average ticket size of microfinance loans has been steadily increasing with an increase of 12 percent in June 2019, while the live customer base is growing at a declining pace, credit information company CRIF Highmark said.  "In recent years, especially post-demonetisation period, customer retention has assumed priority by way of offering high-value loans while the growth in outreach is sluggish," the company said. It said the average ticket size has grown to Rs 31,700 from the Rs 31,100 in March and Rs 28,300 in the year-ago period. (Image: Reuters)
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