Good morning…. the headlines first….
>> All eyes on Singapore as US President Donald Trump meets North Korean leader Kim Jong Un; but markets sceptical about an outright positive deal
>> Indias domestic sales for diesel and petrol hit a record high in May despite high prices
>> Sebi plans to tighten rules for trading settlement and introduce custodians for retail investors to tackle defaulting brokers and vanishing share portfolios
>> In Brexit showdown, British PM faces a showdown in Parliament with lawmakers who want more power to challenge an eventual Brexit deal
You are with ETMarkets.com. This is Tuesday, June 12. And I am Prachi Sharma, your market jockey. As always, it's good to have you with us for the morning briefing.
Its an eventful day.
Longtime adversaries US and North Korea have just kicked off their much-anticipated summit meeting in Singapore. US is said to be pressing Kim to relinquish his nations nuclear programme. Trump tweeted that the world will know soon if a real deal is possible. But markets remained sceptical about an outright positive deal.
In US, the Fed goes into its rate-setting huddle later in the day, amid expectations that it would increase interest rates by 25 basis points and keep open the possibility that the next hike could come as early as September rather than December.
And in Britain, Prime Minister Theresa May faces the first day of votes that could further complicate her tortured negotiations to quit the EU. Some lawmakers are seeking more powers to challenge an eventual Brexit deal, testing Mays authority and plans for leaving the EU.
All of that promises to keep financial markets on tenterhooks.
Meanwhile back home…
Sebi plans to tighten rules for trading settlement and introduce custodians for retail investors to ensure brokers do not misuse clients accounts and sell their shares without nod unless the client has defaulted.
RBIs rupee-rescue mission is costing it a bomb. The central bank is said to have sold a record $6 billion of US currency in April to lessen the slide of the domestic currency.
On Monday, the rupee strengthened marginally against the US dollar and closed 4 paise higher at 67.46.
The advance of monsoon is all set to get stalled for a week from Wednesday, slowing its progress in eastern and central India. Met office expects a revival only towards third week of June.
In financial markets….
Asian stocks were tentative this morning. Japan's Nikkei climbed nearly 1 per cent, while South Korean shares added 0.1 per cent. On Wall Street, Dow, S&P500 and Nasdaq closed barely changed in overnight trade. The dollar traded at a three-week high this morning.
Nifty futures were flat in Singapore with a negative bias, signalling rangebound trade on Dalal Street, as investors feared a major spike in May inflation data due later today.
Economists say India's retail inflation may have hit a four-month high in May, primarily driven by a surge in energy prices.
Crude prices were little changed in early Asian trading on Tuesday amid signs that Saudi Arabia has increased output and may push for raising production at the June 22 OPEC meeting.
Brent futures traded at $76.40 a barrel this morning.
Indias domestic sales for diesel and petrol rose to record highs in May, pushing the countrys overall fuel consumption for the month higher year-on-year. Official data showed diesel consumption rose 6 per cent during the month from last year.
In Corporate news…
SBI is aiming to recover Rs 50,000 crore bad loans this financial year….
Birla Sun Life is likely to pull out of the bidding race for IDBI Federal Life Insurance….
Fortis board has deferred approval to Q4 earnings by two weeks, saying it needs time to consider internal investigation report….
In the PNB fraud case, CBI has approached Interpol, seeking a red corner notice against Nirav Modi and his uncle Mehul Choksi….
Thats it for today. Thank you for listening in. Do log on to www.etmarkets.com for round-the-clock market coverage, lots of investment tips and dozens of stock recommendations.
Enjoy your trading day and make lots of money. Have a great weekend… good bye