Indian markets likely to be cautious ahead of G-20 Summit2 min read . Updated: 27 Jun 2019, 08:54 AM IST
- Shares of Godrej group are likely to be in focus today
- As per media reports, Coca-Cola is in talks to buy Cafe Coffee Day
Indian stock markets are likely to be cautious ahead pf G-20 Summit. Asian markets were busy going nowhere on Thursday as confusion shrouded the chances of any progress in the Sino-US. trade standoff, while bulls scaled back wagers for a drastic cut in US interest rates.
US President Donald Trump said on Wednesday that a trade deal with Chinese President Xi Jinping was possible this weekend but warned he was prepared to impose US tariffs on virtually all remaining Chinese imports if talks fail.
Trump also raised the possibility that he may impose a lower, 10% duty on a $300 billion list of Chinese imports, instead of the proposed 25% rate. Enroute to the G20 meeting in Japan on Air Force One, Trump later tweeted he was “off to save the Free World!"
Investors were clearly on the sidelines with MSCI’s broadest index of Asia-Pacific shares outside Japan dipping 0.01% in very light trade.
Japan’s Nikkei added 0.3%, helped by a pullback in the yen, while Australian stocks eased 0.4%. Wall Street had been equally circumspect, with the Dow ending Wednesday down 0.04%, while the S&P 500 lost 0.12% and the Nasdaq rose 0.32%.
Back home, shares of Godrej group are likely to be in focus today as news reports said that Godrej family has hired top law firms to untangle land holdings worth ₹20000 crore.
Investors are also expected to watch out Cafe Coffee Day amidst media reports that soft drinks maker Coca-Cola is in talks to buy into the cafe chain company.
Meanwhile, treasury yields edged up in response, though the two-year is only just above 19-month lows at 1.77%. That in turn eased the selling pressure on the US dollar, which inched up to 96.175 on a basket of currencies from a three-month trough of 95.843. The dollar bounced modestly on the yen to 107.76 and away from a low of 106.77. The euro likewise eased back to $1.1371 from a top of $1.1412.
The dollar’s gains took a little of the shine off gold, which broke a six-session winning stretch and eased to $1,410.12 per ounce.
Oil prices ran into profit-taking in early Asia, having gained overnight on a larger-than-expected drawdown in crude stocks as exports hit a record high and surprise falls in refined product stockpiles. Brent crude futures eased 54 cents to $65.95, while US crude lost 48 cents to $58.84 a barrel.
(Reuters contributed to the story)