Investors are keeping a key eye on Tuesday’s US consumer prices data followed by Thursday’s retail sales report. These are the last major data ahead of the Federal Reserve’s interest rate move next week. Even though the fuel prices may have contributed to the easing of inflation, Fed is expected to continue with its rate hike policy.
Container shipping charter rates set for course correction: Report
Container shipping charter rates are set for a course correction after touching historical highs in 2021 and staying elevated so far this year, according to a report.
It also expects margins of the Indian shippers squeezing this fiscal even as they will be higher than the pre-Covid level.
Charter rates were up 156 per cent year-on-year for the first seven months of this year, according to Crisil Research.
Over the remaining months, however, the rates are expected to decline, though still ending the year 40-70 per cent higher, it said. (PTI)
UK’s Abrdn mulls to sell 4.3 cr HDFC Life shares to raise up to ₹2,425 crore
United Kingdom-based investment company Abrdn is mulling to sell up to 4.3 crore sales representing 2% of HDFC Life Insurance Company’s outstanding shares through a block deal to raise over ₹2,425 crore.
Formerly known as Standard Life Aberdeen, the Edinburgh-based firm has offered the shares in the price band of ₹564.1 to ₹578.55, which is a discount of up to 2.5% on the scrip’s close on 12 September in the block deal. (Read More)
Vedanta picks Gujarat for $20 billion India semiconductor foray
Vedanta Ltd has selected Indian Prime Minister Narendra Modi’s home state of Gujarat for its semiconductor project, two sources told Reuters, the first major step in its $20 billion joint venture with Taiwan’s Foxconn.
Vedanta obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants. (Full Report)
Depleting reserves spell risks for emerging Asian currencies like India
Emerging Asian central banks have seen a sharp depletion in their foreign-exchange reserves, stoking concerns it may crimp market interventions to curb currency losses in the face of the mighty dollar.
A closely-watched measure of reserves cover — the number of months of imports a country can finance with its foreign-exchange holdings — has dropped to about seven for EM Asia ex-China, the lowest since the global financial crisis in 2008, according to Standard Chartered Plc. It was about 10 months at the beginning of the year and as high as 16 in August 2020, pointing to erosion of developing nation firepower to defend currencies. (Full Report)
Retail inflation quickens to 7% after cooling to a five-month low in July
Price pressures returned to the Indian economy in August, with retail inflation quickening to 7% after cooling to a five-month low in July. The increase, led by food prices, makes it the eighth month that retail inflation has stayed above the central bank’s upper tolerance limit of 6%, strengthening the case for continued monetary tightening.
Retail inflation in July had cooled to 6.7%, and a Mint poll of 22 economists estimated August inflation at 6.9%. The Reserve Bank of India has projected Consumer Price Index (CPI) based inflation for 2022-23 at 6.7%. (Full Report)
US stocks close higher on Monday ahead of key inflation data
Wall Street stocks ended with solid gains Monday, continuing the upswing last week that snapped a three-week losing streak.
The Dow Jones Industrial Average gained 0.7% to finish the day at 32,381.34, the fourth straight gain.
The broad-based S&P 500 advanced 1.1% to 4,110.41, while the tech-rich Nasdaq Composite Index rose 1.3% to 12,266.41.
Investors are looking ahead to a critical release Tuesday on US consumer prices, followed by Thursday’s report on retail sales — the last major data ahead of the Federal Reserve’s interest rate move next week.
While inflation is expected to have eased in August, largely due to falling gasoline prices, it seems unlikely it will be enough to stave off a third consecutive three-quarter point rate hike from the Fed. (AFP)
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