SENSEX
NIFTY 50
Hang Seng
Taiwan Weighted
MCX GOLD DEC 05
MCX SILVER DEC 05
USD/INR
EUR/INR80.0630

SENSEX
NIFTY 50
NIFTY MIDCAP 100
S&P BSE MIDCAP
Hang Seng
Taiwan Weighted
DAX
Nasdaq
MCX GOLD DEC 05
MCX SILVER DEC 05
MCX CRUDEOIL NOV 16
MCX NATURALGAS OCT 26
USD/INR
EUR/INR
GBP/INR
JPY/INR

Stock Market Live: Sensex surges 450 points, Nifty nears 15,100; banks, metal stocks lead

Shares, dollar cheer US stimulus, bonds downcast

Brent cracks $70 for first time since pandemic began after Saudi facilities attacked

Rupee falls 14 paise to 73.16 against US dollar in early trade

Global Markets: Asia shares pare losses as China economy rebounds

Updated : January 18, 2021 11:04 AM IST

Asian shares pared early losses on Monday as data confirmed China’s economy had bounced back last quarter as factory output jumped, helping partially offset recent disappointing news on US consumer spending. Chinese blue chips gained 0.8 percent after the economy was reported to have grown 6.5 percent in the fourth quarter, on a year earlier, topping forecasts of 6.1 percent.

Industrial production for December also beat estimates, though retail sales missed the mark. ”Despite the latest dip in retail sales, we see plenty of upside to consumption as households run down the excess savings they accumulated last year,” said Julian Evans-Pritchard, senior China economist at Capital economics. ”Meanwhile, the tailwinds from last year’s stimulus should keep industry and construction strong for a while longer.”

MSCI’s broadest index of Asia-Pacific shares outside Japan trimmed losses and were off 0.3 percent, having hit a string of record peaks in recent weeks. Japan’s Nikkei slipped 0.8 percent and away from a 30-year high.

E-Mini futures for the S&P 500 dipped 0.2 percent, though Wall Street will be closed on Monday for a holiday. EUROSTOXX 50 futures eased 0.2 percent and FTSE futures 0.1 percent.

Also Read: Here is a live update on Indian equity markets

The pick-up in China was a marked contrast to the US and Europe, where the spread of coronavirus has scarred consumer spending, underlined by dismal US retail sales reported on Friday.

Also evident are doubts about how much of US President-elect Joe Biden’s stimulus package will make it through Congress given Republican opposition, and the risk of more mob violence at his inauguration on Wednesday.

”The data bring into question the durability of the recent move higher in bond yields and the rise in inflation compensation,” said analysts at ANZ in a note.

”There’s a lot of good news around vaccines and stimulus priced into equities, but optimism is being challenged by the reality of the tough few months ahead,” they warned. ”The risk across Europe is that lockdowns will be extended, and US cases could lift sharply as the UK COVID variant spreads.”

That will put the focus on earnings guidance from corporate results this week, which include BofA, Morgan Stanley, Goldman Sachs and Netflix.

The poor US data helped Treasuries pare some of their recent steep losses and 10-year yields were trading at 1.087 percent, down from last week’s top of 1.187 percent. The more sober mood, in turn, boosted the safe-haven US dollar, catching a bearish market deeply short. Speculators increased their net short dollar position to the largest since May 2011 in the week ended Jan. 12.

The dollar index duly firmed to 90.816, and away from its recent 2-1/2 year trough at 89.206.

The euro had retreated to USD 1.2074, from its January peak at USD 1.2349, while the dollar held steady on the yen at 103.78 and well above the recent low at 102.57.

The Canadian dollar eased to USD 1.2773 per dollar after Reuters reported Biden planned to revoke the permit for the Keystone XL oil pipeline.

Biden’s pick for Treasury Secretary, Janet Yellen, is expected to rule out seeking a weaker dollar when testifying on Capital Hill on Tuesday, the Wall Street Journal reported.

Gold prices were undermined by the bounce in the dollar leaving the metal at USD 1,828 an ounce, compared to its January top of USD 1,959.

Oil prices ran into profit-taking on worries the spread of increasingly tight lockdowns globally would hurt demand. Brent crude futures were off 52 cents at USD 54.58 a barrel, while US crude eased 44 cents to USD 51.92.

Published : January 18, 2021 10:21 AM IST

You May Also Like

Budget Session Latest: Cong creates ruckus in Rajya Sabha over fuel price hike, House adjourned till 1 PM

Budget Session Latest: Cong creates ruckus in Rajya Sabha over fuel price hike, House adjourned till 1 PM

India vs. England: Visitors lose, India scent series win by 3-1

India vs. England: Visitors lose, India scent series win by 3-1

DHFL auditor Grant Thornton finds another fraud of Rs 1,424 crore

DHFL auditor Grant Thornton finds another fraud of Rs 1,424 crore

Trending on CNBC-TV18

Live TV

recommended for you