June 19, 2019 / 3:06 AM / a month ago

Morning News Call - India, June 19

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    FACTORS TO WATCH 
    3:00 pm: Prime Minister Narendra Modi to chair meeting of heads of various
political parties in Parliament on the eve of Budget Session 2019 in New Delhi. 
  
    
    LIVECHAT - EMERGING MARKETS OUTLOOK
    Per Hammarlund, chief EM strategist at SEB, discusses developing world
currencies amid market expectations for lower U.S. rates. He also examines
central bank policy for countries including South Africa, Turkey and Russia at
3:30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India to review data storage rules that irked U.S. tech firms
    India will examine concerns raised by foreign technology companies around
stringent rules to store data locally, the government said on Tuesday, an issue
that has upset firms such as Mastercard and also irked the U.S. government.

    • India sacks 15 senior tax officials over corruption
    India on Tuesday sacked 15 senior tax officials facing probes in corruption
cases, sending across a tough message to bureaucrats taking kickbacks for
facilitating tax evasion by companies, a government statement said.
    
    
    GLOBAL TOP NEWS
    • U.S., China rekindle trade talks ahead of Trump-Xi G20 meeting
    China and the United States are rekindling trade talks ahead of a meeting
next week between Presidents Donald Trump and Xi Jinping, cheering financial
markets on hopes that an escalating trade war between the two countries would
abate.
    • Japan exports slide for 6th month as trade troubles knock demand, weaken
outlook
    Japan's exports fell for a sixth straight month in May as China-bound
shipments of semiconductor manufacturing equipment and car parts weakened, in a
sign of a deteriorating outlook for growth as the trade-reliant economy faces
persistent pressure from slowing external demand.
    • Facebook's cryptocurrency ambitions face privacy concerns, political
backlash
    Facebook announced ambitious plans on Tuesday to launch a new global
cryptocurrency called Libra, part of an effort to expand into digital payments
that immediately raised privacy concerns.
    
    
    Thomson Reuters/INSEAD Asian Business Sentiment Survey 2019Q2
    Confidence among Asian companies in the June quarter fell to its lowest
since the 2008-09 financial crisis, as a U.S.-China trade war disrupts global
supply chains and shows little sign of easing soon, a Thomson Reuters/INSEAD
survey found. To read more, click here here
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.4% higher at 11,759.50. 
    • The Indian rupee is expected to open higher against the dollar amid
optimism over trade and indications of more stimulus measures by the European
Central Bank. 
    • Indian government bonds are likely to edge lower in early trade tracking
an overnight gain in crude oil prices, even as sentiment remains supported ahead
of the U.S. Federal Reserve’s rate decision. The yield on the benchmark 7.26%
bond maturing in 2029 is likely to trade in a range of 6.78% - 6.84% today. 
    
    
    GLOBAL MARKETS
    • Wall Street surged on Tuesday and the S&P 500 approached a record high
after Washington rekindled trade talks with Beijing, boosting sentiment along
with growing investor confidence that the Fed will cut interest rates this year.

    • Asian share markets jumped as investors dared to hope the Federal Reserve
would follow the lead of the European Central Bank and open the door to future
rate cuts at its policy meeting later in the day.
    • The dollar held near a two-week high ahead of the Federal Reserve's
closely-watched policy decision later in the day, supported by a surprisingly
dovish European Central Bank and bearish eurozone economic data.
    • U.S. Treasury yields plunged on Tuesday, in line with the European market,
after European Central Bank President Mario Draghi hinted at more stimulus if
regional inflation fails to pick up toward its target.
    • Oil prices climbed, extending sharp gains from the previous session on
rekindled hopes for a U.S.-China trade deal and on continued tensions in the
Middle East after tanker attacks there last week.
    • Gold traded almost steady as investors awaited the U.S. Federal Reserve's
monetary policy decision later in the day, while expectations of an improvement
in trade relationship between the United States and China dented the metal's
appeal.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         69.65/69.68  June 18          $4.56 mln   -$2.27 mln
 10-yr bond yield  6.81%        Month-to-date    $2.24 mln   $417.71 mln
                                Year-to-date     $11.19 bln  -$1.71 bln
 
    
    For additional data:
    India govt bond market volumes                 
    Stock market reports                
    Non-deliverable forwards data              
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
    

    ($1 = 69.60 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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