Pre Session- Global jitters to exasperate Dalal Street sell-off
05/06/2015
Indian equity benchmarks, are poised to retreat for a fourth straight day on Friday as worries over Greece unnerves investors across the globe while caution prevails ahead of the much anticipated US May non-farm payrolls data, the quality of which may dictate the timing of the US Federal Reserve’s maiden interest rate hike since 2006. The Sensex, which fell 23.78 points or by 0.09 per cent at 26,813.42 on Thursday as worries that a below par Monsoon may crimp room for further rate cuts as food inflation raises its ugly head, may fall prey to a global sell-off on Friday with most markets in Asia in the red tracking a bearish finish at Wall Street overnight as European bond yields surged after the European Central Bank (ECB) warned of higher volatility across global equity and bond markets. Weakness in the SGX CNX Nifty Index futures for June delivery which tumbled by 0.75 per cent at 8,085 at 10:36 am Singapore time, signal a gap down opening at Dalal Street on Friday. Meanwhile, Greece asked for a deferral on its debt payments to the IMF, becoming the first country since the 1980s to delay a loan repayment to the Washington-based institution, taking it closer to a catastrophic default that threatens to shake up the euro. All eyes will also be on the US jobs data which may show that the world’s biggest economy added 225,000 jobs in May, up from 223,000 in April. Thursday’s labour market data showed a dip in jobless claims by 8,000 to 276,000, a sign that the US labour market recovery remains on track that may prompt the Fed to start considering a rate lift-off in the coming months. While shares in mainland China soared after the country’s benchmark money rate declined the most in more than two months, Hang Seng succumbed to losses while Japanese shares were lower despite a weaker yen which tends to boost export demand. Meanwhile, Finance Minister Arun Jaitley’s comments that fears over the Met Department’s monsoon forecast were “misplaced”, as he played down the impact on food produce will come as a relief for traders, trimming losses at Dalal Street.
05/06/2015
Indian equity benchmarks, are poised to retreat for a fourth straight day on Friday as worries over Greece unnerves investors across the globe while caution prevails ahead of the much anticipated US May non-farm payrolls data, the quality of which may dictate the timing of the US Federal Reserve’s maiden interest rate hike since 2006. The Sensex, which fell 23.78 points or by 0.09 per cent at 26,813.42 on Thursday as worries that a below par Monsoon may crimp room for further rate cuts as food inflation raises its ugly head, may fall prey to a global sell-off on Friday with most markets in Asia in the red tracking a bearish finish at Wall Street overnight as European bond yields surged after the European Central Bank (ECB) warned of higher volatility across global equity and bond markets. Weakness in the SGX CNX Nifty Index futures for June delivery which tumbled by 0.75 per cent at 8,085 at 10:36 am Singapore time, signal a gap down opening at Dalal Street on Friday. Meanwhile, Greece asked for a deferral on its debt payments to the IMF, becoming the first country since the 1980s to delay a loan repayment to the Washington-based institution, taking it closer to a catastrophic default that threatens to shake up the euro. All eyes will also be on the US jobs data which may show that the world’s biggest economy added 225,000 jobs in May, up from 223,000 in April. Thursday’s labour market data showed a dip in jobless claims by 8,000 to 276,000, a sign that the US labour market recovery remains on track that may prompt the Fed to start considering a rate lift-off in the coming months. While shares in mainland China soared after the country’s benchmark money rate declined the most in more than two months, Hang Seng succumbed to losses while Japanese shares were lower despite a weaker yen which tends to boost export demand. Meanwhile, Finance Minister Arun Jaitley’s comments that fears over the Met Department’s monsoon forecast were “misplaced”, as he played down the impact on food produce will come as a relief for traders, trimming losses at Dalal Street.
