Five factors that are shaping the market today

Arun Jaitley on Thursday said he will soon let us know about who the next RBI governor will be. In US, another key Federal Reserve policymaker commented rate hike in September makes sense, joining the chorus of hawks. Overnight, oil prices rose above $50, while at home reaction on proposed SBI merger with its subsidiaries is hogging the limelight.

Here is a complete wrap-up of the above points and all you need to know about Friday's trading day:

1. Fed hawks vs doves: San Francisco Federal Reserve Bank President John Williams joined a growing chorus of his colleagues signaling support for a US interest rate hike in coming months, saying that waiting too long could be costly for the economy. New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart had also made the case that the US economy is in good shape and that the Fed should consider policy tightening.
2. US labour market shows firm trend: The number of Americans filing for unemployment benefits fell more than expected last week, reinforcing views of labour market strength that could encourage the Federal Reserve to raise interest rates soon. Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 262,000 for the week ended August 13, the Labor Department said.
3. Oil prices: Brent crude prices jumped above $50 per barrel in Thursday's trade in a bull-run that has lifted the market by over 20 per cent since early August. The prices dipped slightly in today's trade, but hovered near two-month highs.
4. Rajan's successor: A senior aide to Prime Minister Narendra Modi said he was "expected to make up his mind very soon" on replacing Raghuram Rajan. "We will let you know when we decide," Jaitley told reporters as he returned to the finance ministry after a meeting with Modi. "You will come to know the conclusion, not the process," said Jaitley.
5. SBI merger: Country's largest lender State Bank of India on Thursday approved the merger of associate banks with itself. The bank announced a share swap scheme that gives investors more value for their holdings.