Dear Reader , The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. In a case of how cheer for the economy may not be so for markets, investors in US stocks fretted over excellent jobs data. US businesses added 5,28,000 jobs in July, beating most estimates by an embarrassing margin. US 2-year treasuries rose after the report, as the market priced in a more certain likelihood of another 75-basis point rate hike by the US Fed. But the S&P 500 slipped, as investors pondered over what too strong an economy could mean for interest rates. Those fears did not carry over to India, however, with the stock market rising by a strong 0.8 percent at 1.15pm. The RBI’s 50 basis point hike in the repo rate last week and its determination to stay in ‘withdrawal of accommodation’ mode is … [Read more...] about Moneycontrol Pro Panorama | Are US and Indian markets decoupling?
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RBI Governor Shaktikanta Das. (File photo) Dear Reader , A day before the monetary policy announcement, the yield on the 10-year bond fell sharply on a media report that the MPC would signal a pause after Friday’s hike. Thankfully, the MPC held firm, refusing to oblige the bond markets. Not only did it increase the repo rate by 50 basis points, but also the MPC signalled more rate hikes in future by refusing to tone down its ‘withdrawal of accommodation’ stance. Much is being made of the fact that the policy rate is now at the pre-pandemic level. At 5.4 percent, the repo rate is now back to where it was in September 2019. But that is no big deal. GDP growth was a measly 3.7 percent in 2019-20 compared to RBI’s projection of 7.2 percent in 2022-23; retail inflation was a much lower 4.8 percent in 2019-20, compared to a projected 6.7 percent for 2022-23; the current account deficit was a comfortable 0.9 percent of GDP in 2019-20 as against projections of around 3 percent … [Read more...] about Moneycontrol Pro Weekender | Shaktikanta Das refuses to pivot
Representative image Shares slipped and the dollar hung off recent highs on Tuesday as investors eyed U.S. inflation data due a day later that will likely yield clues to any further aggressive Federal Reserve rate hikes. The stakes are high for the July U.S. consumer prices report on Wednesday after an unexpectedly strong U.S. jobs data last week boosted expectations of a sharp interest rate increase to tackle soaring inflation. The broader Euro STOXX 600 fell 0.6%, after logging its best session in nearly two weeks on Monday, with German stocks down 0.7%. Miners and autos, among top gainers a day earlier, led declines on Tuesday. Wall Street futures pointed to slim gains. "The focus is on tomorrow's U.S. inflation numbers and whether or not they are likely to show any indication of a softening of inflationary pressures," said Michael Hewson, chief market analyst at CMC Markets. Close "Are we near the peak, and will tomorrow's CPI numbers reflect that?" … [Read more...] about Stocks stumble as caution reigns ahead of U.S. inflation data
Representative image Impostor syndrome seems to be more common than actually thought, though at a collective level. People may often feel that the groups they are affiliated with may be underperforming in comparison to other groups. Although this self-critical approach may work in certain cases, it may also overlook the positives, and decrease the morale of those affiliated with the group. Many in India seem to have a collective/national-level impostor syndrome. While the Indian economy is much better placed than its peers in the emerging markets, and other economies, the government is being criticised on the economic front. The criticism comes when the fundamentals of the Indian economy are robust, despite the exogenous shocks caused by the COVID-19 pandemic, supply chain disruptions, monetary policy tightening by the US Federal Reserve, the Ukraine-Russia conflict, and inflated crude oil prices. India's macroeconomic health remains robust despite external pressures, and ongoing … [Read more...] about Bibek Debroy writes: India’s economy is better placed than its peers, other economies around the world
If you're serious about bringing your ideas for products to market, you should absolutely attend trade shows. They're always eye-opening. The only way to truly understand the mechanics of any industry is by attending its trade shows. One guarantee? You'll be overwhelmed. I've attended all kinds of shows over the course of my career as a product developer , including toys, back-to-school, pet, housewares, hardware, electronic, promotional, music, and more. Checking out the latest innovations and making new friends at a trade show never fails to inspire me. But I've also wasted a lot of time attending the wrong shows and not having clearly defined goals. When you're starting out, it's especially important that you make good decisions. Your resources are limited! Preparation is key. At trade shows, I meet inventors who have spent years and tens of thousands of dollars getting ready to show their product to the world. They've paid for a booth and now today's the big … [Read more...] about What Inventors Need to Know About Trade Shows
- A + A KUALA LUMPUR (Aug 9): Bursa Malaysia closed mixed on Tuesday (Aug 9) with the benchmark index ending in the positive territory backed by buying in heavyweights, in sync with the mixed performance in regional bourses. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.65 points to 1,497.68 from Monday’s close of 1,496.03. The benchmark index, which opened 2.49 points higher at 1,498.52 on Tuesday morning, fluctuated between 1,495 and 1,501.03 throughout the trading session. The broader market was negative as losers beat gainers 395 to 373, while 460 counters were unchanged, 1,039 untraded, and eight others suspended. Total turnover increased to 2.52 billion units worth RM1.26 billion from 2.19 billion units worth RM1.33 billion on Monday. Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said investors seemed reluctant to make more significant moves due to the absence of buying catalysts as the market undertone remained jittery … [Read more...] about Bursa ends mixed
Share to Twitter Share to Linkedin Both oil and gas exported from Russia bring in significant revenue that can be used to support the Russian war in Ukraine. But the export revenue from oil sales is much greate r than export revenue from gas sales. If the West stops buying oil this really hurts Russia – more than if the West stopped buying gas. Back in May, the EU agreed to ban all Russian oil imports by the end of 2022, at least those that are delivered by sea. That was a good move. Russia threatens to cut gas supplies to the European Union. Russia has realized that cutting natural gas doesn’t affect their export revenue (like oil does) but it affects the economies of EU countries a lot more. Russia supplied the EU with 40% of its gas last year , with Germany, Italy, and Netherlands the top three importers in actual volumes of gas. Germany had imported more than 50% of its gas from Russia via the Nord Stream 1 pipeline. By the end of June, … [Read more...] about Russia Threatens, EU Reduces, US Industry Helps To Untangle The Natural Gas War In Europe.
- A + A MOSCOW (Aug 9): The rouble firmed towards 60 against the U.S. dollar on Tuesday, retaining support from capital controls and high prices for oil, Russia's key export, while stock indexes were mixed as the market lacked momentum. At 0738 GMT, the rouble was 0.6% stronger against the dollar at 60.40, trading in a range between 59 and 62 for the sixth day in a row. Against the euro, the rouble firmed 1.2% to 61.48 , well above the record low of 132.42 it hit days after Moscow sent tens of thousands of troops into Ukraine on Feb. 24. The rouble is the best-performing currency so far this year as it received a boost from the capital controls Russia imposed to shield its economy and the financial system from sweeping western sanctions. However the rouble may gradually weaken in the near term given the lack of news triggers and the fact that the monthly tax payment period that usually boosts demand for the currency will only start later in August, analyst at … [Read more...] about Russian rouble firms towards 60 vs dollar, stocks mixed
- A + A (Aug 9): Apple Inc is back in a familiar role as market leader after a painful first half of the year that saw hundreds of billions of dollars in market value disappear, and individual investors are a big reason for the rally. Since bottoming in mid-June, the iPhone maker’s shares have surged 27%, outpacing the S&P 500 Index and the Nasdaq 100 Index. That’s put Apple back on top as the world’s most valuable company and within sight of turning positive for the year. Apple is now down just 7.4% in 2022, compared with a drop of 20% for the Nasdaq 100. Apple shares benefited from a relief rally after its quarterly earnings were better than feared, and its ongoing buoyancy reflects Wall Street’s confidence in its ability to continue churning out big profits. Individual investors, who recently helped ignite rallies in speculative corners of the market, have flocked to the stock. “Retail investors have been strong buyers of Apple over the past couple of … [Read more...] about Apple’s chart-topping run gets a boost from retail investors
The benchmark Philippine Stock Exchange index (PSEi) edged higher on Tuesday despite the latest gross domestic product numbers showing the economy expanded slower than expected to 7.4 percent in the second quarter of the year. The PSEi rose 0.54 percent, or 34.73 points, to 6,468.97 while the broader All Shares index added 0.22 percent, or 7.71 points, to 3,456.44. The Bank of the Philippine Islands (BPI) said growth in the second quarter might have been higher if oil prices were stable. Economists polled by Reuters expected the economy to grow by 8.6 percent in the second quarter. “Nonetheless, the economy has shown its resilience despite this headwind. The impact on mobility has been minimal so far despite the increase in transport costs,” BPI said. The lender added that slower growth was expected in the second half of the year due to “fading base effects and the impact of inflation.” “Pent up demand may still be present but most likely it’s as strong as before. … [Read more...] about PH equities cheer strong Q2 economic growth