Mumbai: Indian stock markets may tick marginally lower on Monday, with global peers having kick-started the week on cautious note.
Asian equities and the Chinese yuan were off to a cautious start on Monday as investors looked to how Chinese financial markets will react to the news that the Donald Trump administration was considering delisting Chinese companies from US stock exchanges.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.11% while Japan’s Nikkei shed 0.61%. US stock futures gained 0.24% in early trade, paring back almost a half of Friday’s 0.53% fall in the index.
The offshore Chinese yuan was little moved at 7.1339 yuan per dollar and off Friday’s three-week low of 7.1520 to the dollar.
Chinese share markets will trade only on Monday this week ahead of China’s National Day holiday, which runs until 7 October.
Risk assets took a hit in US trade on Friday following news that the Trump administration was considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from US stock exchanges. The delisting of Chinese companies from US stock exchanges was part of a broader effort to limit US investment in Chinese companies.
Still, with trade talks between Washington and Beijing expected to be held 10-11 October, many market players were sticking to hopes such drastic measures on capital markets could be avoided. Surveys on Chinese companies are due on Monday while in the US, key business sentiment data and an employment report will be closely scrutinized on clues on how the economy is faring in the face of the ongoing tussle with China.
Risk assets took a hit in US trade on Friday following news that the Trump administration was considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from US stock exchanges. The delisting of Chinese companies from US stock exchanges was part of a broader effort to limit US investment in Chinese companies.
Still, with trade talks between Washington and Beijing expected to be held 10-11 October, many market players were sticking to hopes such drastic measures on capital markets could be avoided. Surveys on Chinese companies are due on Monday while in the US, key business sentiment data and an employment report will be closely scrutinized on clues on how the economy is faring in the face of the ongoing tussle with China.
The government on Sunday banned exports and imposed countrywide stock limits on onion with immediate effect to bring down prices of the key vegetable that have soared ahead of state elections in Maharashtra and Haryana.
Adani group was preparing to raise as much as $2 billion by selling dollar-denominated bonds as it seeks to refinance a bulk of its local debt and diversify its creditor base.
The initial public offer (IPO) of state-owned Indian Railway Catering and Tourism Corporation (IRCTC) will open for subscription today. The issue with price band of ₹315-320 will close on 3 October. The share sale is a part of the government’s divestment programme for the current financial year 2019-20 and shares will be offered to employees and retail investors at a discount to the final price.
Major currencies were little changed in early trade. The yen traded flat at 107.94 yen. The euro hovered at $1.0945, having sunk to a 28-month low of $1.0904 on Friday as concerns about tepid growth in Europe weighed on the common currency. Sterling traded at $1.229, not far from Friday’s low of $1.2270, its lowest since 9 September.
Oil prices slightly bounced off a tad after last week’s slide. Brent crude futures rose 0.34% to $62.12 a barrel while US West Texas Intermediate (WTI) crude gained 0.32% to $56.09 per barrel.
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