Morning note:
Concerned about stubbornly high inflation, major central banks across the world, have been moving forward with plans to raise rates. On Tuesday, the Reserve Bank of Australia signaled it would raise interest rates sooner than expected.
Canada’s central bank suggested last week that it could do so as soon as April. The Bank of England is expected to increase rates when it meets on Thursday.
The Reserve Bank of India may also start winding back its loose monetary policy. The central bank has cut the repo rate – from 6.25% in February to 4% in October 2021 – and embarked on a liquidity infusion plan.
The U.S. Federal Reserve will wrap up its two-day policy meeting later today. Investors will look for cues on the Fed’s thinking on policy rates.
In another major development, Barclays Plc.’s CEO Jes Staley stepped down under pressure from regulators over how he characterised his ties with convicted sex-offender Jeffrey Epstein. C.S. Venkatakrishnan, known as Venkat, will replace Staley as CEO, and continue his predecessor’s strategy of betting big on investment banking. – John Xavier
Follow our live blog for more updates on global economy, business and markets.
11:45 A.M.
Adani Power to acquire Essar’s 1,200 MW project
The National Company Law Tribunal has approved Adani Power’s acquisition of Essar Power’s 1,200 MW thermal power project in Mahan, Madhya Pradesh.
Adani Group’s power unit had emerged as the successful bidder for the Essar Power’s project in June. Essar Power M P Ltd is undergoing insolvency resolution under the Insolvency and Bankruptcy Code.
11:20 A.M.
Rupee rises against U.S. dollar
The Indian rupee continues to appreciate against the U.S. dollar. The domestic unit opened strong at 74.64 against the greenback and gained further ground to 74.54 in early deals, a rise of 14 paise over its previous close. The Indian currency was supported by a positive trend in domestic equities market.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01% to 94.07.
10:45 A.M.
China’s Oct services activity expands
China’s services sector activity expanded at a faster pace in October, driven by strong demand, according to a private survey.
The Caixin/Markit services Purchasing Managers’ Index (PMI) increased to 53.8 in October – the highest since July – from 53.4 in September.
“Supply and demand recovery both retained momentum. Employment was more or less stable. Gauges for prices were high,” Wang Zhe, senior economist at Caixin Insight Group, said.
10:20 A.M.
ByteDance founder steps down as chairman
ByteDance co-founder Zhang Yiming.
| Photo Credit: Reuters
ByteDance founder Zhang Yiming has stepped down as chairman of the company. He will be succeeded by Liang Rubo, the new chief executive of the Chinese firm. Zhang had announced his resignation as ByteDance CEO in May.
The development comes a day after Rubo announced a major organisational reshuffle at ByteDance by creating six business units. He also noted that ByteDance CFO Shou Zi Chew will step down to focus on running TikTok fulltime.
9:55 A.M.
Oil prices dip
Oil prices dipped as industry data indicated a large build up in crude oil and distillate inventory in the U.S. Brent crude futures fell by 1.2%, to $83.74 a barrel, while U.S. WTI crude futures dropped by 1.5% to $82.65 a barrel. Crude stocks rose by 3.6 million barrels for the week ended Oct. 29.
9:25 A.M.
Asian markets update; Sensex opens
Indian indices opened higher amid mixed global cues. The Sensex opened at 60,275.21 up 246.15 points after slipping over 100 points in the previous session. Similarly, the Nifty opened at 17,970.90, up 59 points after dropping 0.23% yesterday.
Asian stocks were mixed in the morning trade as investors await the Federal Reserve’s plans to taper its massive stimulus.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.33% in early trading. Japanese markets were closed for a public holiday. Hong Kong’s Hang Seng fell 1.18%. South Korea’s Kospi was down 1.23%.
In U.S., all three major stock indexes touched intraday record highs during the session. The Dow Jones Industrial Average gained 0.39%, and the S&P 500 added 0.37%. The Nasdaq Composite rose 0.34%.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
For all the latest business News Click Here
