Market movers: Market Movers: Trump threatens to end N-pact with Russia; Global growth outlook dims; Oil prices steady & more


Here’s a lowdown on top macro triggers that may move market on Monday. This report was compiled from agency feeds.

Trump Wants to End N-treaty with Russia

President Donald Trump said Washington would withdraw from a landmark Cold War-era treaty that eliminated nuclear missiles from Europe because Russia was violating the pact, triggering a warning of retaliatory measures from Moscow. The US has been warning Russia it could resort to strong countermeasures unless Moscow complies with international commitments to arms reduction under the Intermediate-Range Nuclear Forces Treaty, a pact concluded in 1987 that’s considered a landmark of Cold War detente.

Global Growth Outlook for 2019 Dims

The outlook for global growth in 2019 has dimmed for the first time, according to Reuters polls of economists who said the US-China trade war and tightening financial conditions would trigger the next downturn. At the start of 2018, optimism about a robust global economic outlook was almost unanimous among respondents. The latest shift in growth expectations comes on the heels of a deep sell-off in financial markets, especially emerging ones, largely driven by trade concerns.

Oil Prices Steady

Oil prices were stable on Monday, supported by supply concerns ahead of the start of US sanctions against Iran’s crude exports, but held back by rising drilling activity in the United States. Front-month Brent crude oil futures LCOc1 were trading at $79.74 a barrel at 0042 GMT, 4 cents below their last close at the end of last week. US WTI crude futures CLc1 were at $69.07 a barrel, 5 cents below their last settlement. US sanctions against Iran’s oil exports will start on November 4.

Sensitive Data Definition to be Sector-Specific

The ministry of electronics and IT (MeitY), which is in the process of finalising of the data protection legislation, could leave it to sectoral regulators and relevant departments to define what constitutes sensitive personal information. Such data will have to be necessarily stored only in India. This will ensure that regulators such as RBI, which has already mandated that payments data should be stored exclusively in India, do not fall foul of the law once it comes into force.

EPFO May Turn Fund Manager

The government is considering converting the Employees’ Provident Fund Organisation (EPFO) into a fund manager for investments of all social security corpus under the mega recast being planned to deliver universal social security for 50 crore workers in the country.

EPFO money manager

India Sells Over $15 Bn US Govt Bonds
The Reserve Bank of India is trimming its holding of US Treasuries as it joins many other emerging economies which have been selling off US bonds amid rising rates. Yet it figures in the list of top fifteen foreign lenders to the US government. RBI sold $ 16.3 billion worth US treasury (US-T) bonds since April with its stock slipping from $157 as of end March to $ 140 billion as of end August. In the same period, China sold US-Ts worth $22.6 bn and Taiwan sold $6.9 billion.

Xi Vows Support to China’s Pvt Sector
Chinese President Xi Jinping vowed “unwavering” support for the country’s private sector, the latest response from Beijing to concern over the outlook for the economy. “Any words and practices that negate and weaken the private economy are wrong,” Xi said in a letter to private entrepreneurs, Xinhua reported on Sunday. China has been facing increasing headwinds this year, including trade tensions with the US and a slumping stock market. In Q3, the economy grew at the slowest pace since early 2009.

Nafed to Supply 200 T of Onion Daily to Delhi
Cooperative Nafed will offload 200 tonnes of onion daily from Monday onwards in the national capital from the government’s buffer stock in a bid to arrest price rise, its managing director Sanjeev K Chadha said. Retail prices of onion, the main kitchen stable, have shot up to Rs 30-40 per kg because of tight supplies from the producing states, as per the trade data. Nafed will offload onions not only in the wholesale markets but also to 400 Mother Dairy Safal outlets.


  • The fundamental feature of tax treaty — a bilateral pact between two countries to resolve issues of double taxation — has come under question. According to a ruling by the Federal Court of Australia, the payments received by TechMahindra from its clients in Australia will be taxed in Australia.
  • Foreign investors have pulled out close to Rs 32,000 crore from the Indian capital markets in the first three weeks of this month due to the ongoing global trade tiff, rising crude prices and higher US treasury yields.
  • Amid rumours about payment defaults on the real estate loan portfolio of Piramal Capital & Housing Finance (PCHFL) by some of the top developers such as Lodha, Omkar, Vatika, Embassy, Radius, Nahar, Aristo and Supertech, Piramal Enterprises on Sunday denied any such problem.
  • All 400-odd petrol pumps along with linked CNG dispensing units in the national capital will remain shut Monday in protest against Delhi government’s refusal to reduce VAT on fuels, the Delhi Petrol Dealers Association (DPDA) said in a statement.

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Rupee Down: The local currency on Wednesday pared all the gains made during the day and settled 13 paise down at 73.61 against the American currency amid sustained capital outflows and strengthening of the US dollar.

10-yr Bond Up: India 10-year bonds increased 0.01% to 7.92% on Friday October 19 from 7.91% in the previous trading session, reports Bloomberg.

Call Rates: The overnight call money rates ended at 6.58% on Friday, according to RBI data. according to RBI data. It moved in a range of 5.10-6.70%, accordig to RBI data.


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