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Market Morning Brief: What you must know as trading begins on Dalal Street

Aside from Alphabet earnings and RBI monetary policy, there are few other updates as well that everyone will be talking about this morning on Dalal Street. 

BT Online   New Delhi     Last Updated: February 2, 2016  | 09:48 IST
What you must know before opening bell rings
US Federal Reserve Vice Chair Stanley Fischer feels global market turmoil has the potential to weaken US economic growth and inflation. Photo: Reuters

Good Morning Business Today readers!

While you were sleeping, Alphabet aka Google toppled Apple to become world's most valuable publicly traded company. Aside from this and of course, RBI monetary policy due today, there are few other updates as well that everyone will be talking about this morning.  
1) Central Bank monetary policy meetings

The Reserve Bank of India is likely to announce its sixth bi-monthly monetary policy review on Tuesday around 11 am IST. Governor Raghuram Rajan is widely expected to wait until after the government's annual budget statement to decide on whether to cut interest rates further.

Reserve Bank of Australia's policy meeting will also be held today around 9 am IST. A Reuters poll predicted that the central bank will hold interest rates steady at a record low of 2.0 percent, where they have stood since May 2015.

2) Fed feels global market turmoil will impact US economy

US Federal Reserve Vice Chair Stanley Fischer feels global market turmoil has the potential to weaken US economic growth and inflation. In a speech on Monday, Fischer said the ingredients for a global slowdown exist, though he stressed that it was still hardly clear how they will evolve and affect the Fed's interest rate policy.

He added that increased concern about the global outlook - including China's slowdown and the crash in commodity prices - appears to have sparked the volatility in global asset markets.

3) Asian markets

Asian shares wobbled on Tuesday as crude oil prices slid on rekindled oversupply fears and after downbeat manufacturing data in US and China raised concerns about global economic slowdown.

China's Shanghai Composite was trading 0.87 per cent higher, while Japan's Nikkei and Hong Kong's Hang Seng index shed 0.17 per cent and 0.45 per cent, respectively.

3) Oil falls, gold gains

US crude fell for a second session on Tuesday as worries about the economic health of top energy consumer China and rising oil supply weighed on markets. The front month contract for West Texas Intermediate (WTI) was down 28 cents at $31.34 after falling $2, or 5.9 per cent, in the previous session.

On the other hand, Gold edged up to a three-month high early on Tuesday as weak global manufacturing surveys soured appetite for risky assets and pushed investors toward safe havens.

4) Wall Street update

US markets cut losses to stage a late-day rally backed by strong gains in shares of Facebook and Google with major indexes closing near the unchanged mark. The stock of Twitter also jumped on the buzz that Silicon Valley investor Marc Andreessen and firm Silver Lake Partners are weighing a deal.

The Dow Jones industrial average was down 17.12 points, or 0.1 per cent, to 16,449.18, the S&P 500 had lost 0.86 points, or 0.04 per cent, to 1,939.38 and the Nasdaq Composite  had added 6.41 points, or 0.14 per cent, to 4,620.37.

5) Alphabet topples Apple

Alphabet Inc reported better-than-expected quarterly profit on Monday, sending shares of Google's parent soaring in after-hours trading and making it the most valuable US company ahead of rival Apple Inc.

It was the first quarter the company provided information on what it calls 'Other Bets' such as self-driving cars, and the solid results eased investor concerns about the company's spending on ambitious projects.

6) US factory data

In the veins of China, US manufacturing activity contracted in January for a fourth straight month as factories grappled with a strong dollar and lower oil prices forced energy firms to further cut spending, but the pace of the decline appeared to be slowing.

While other data on Monday showed consumer spending was flat in December, a jump in savings to a three-year high offered hope that consumption would rebound in the coming months.

7) Coal India output misses target

State-run miner Coal India on Monday said it acheived a production of 52.86 million tonnes coal in January, lower than the target of 56.18 MT for the month.

During April-January period, the miner recorded 426.31 MT of coal as against a target of 439.26 MT.

Coal offtake in January was also lower at 48.32 MT than the targetted level of 50.85 MT for the month. During April-January, total offtake stood at 437.61 MT as against the target of 450.49 MT. 

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