Morgan Stanley Spots An Extremely Rare Market Signal Which Precedes Selloffs (SPY flat +0.02%). GM shares hit record high after revealing electric van and flying cars.
The Market in Perspective
Here are the headlines moving the markets.
Google Looks To Turn Data Centers Into Energy Storage When most people imagine the internet, the last thing that comes to mind is huge, on-the-ground facilities and thousands of miles of wires across the ocean floor, but even the digital age depends entirely on material things. Even the cloud, whose very name suggests an ethereal, floating datasphere free from servers, towers, and wires, is housed in data centers around the world. And those data centers require energy a LOT of energy. As more and more people get connected to the internet around the world and spend increasingly lengthy amounts
Explore Now
Domestic equity indices have risen in the last three sessions and they look set for another day of strong gains on firm global cues, a soft inflation print at home and optimism over IT earnings. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 25.5 per cent points or 0.17 per cent higher at 14,626, in signs that Dalal Street was headed for a positive start on Wednesday.
Tech View: Risk takers can buy on dips
Nifty50 on Tuesday made higher highs for the 14th straight session and formed a bullish candle on the daily chart. Analysts said Nifty’s positive momentum can continue and it can look to take out the 14,750 level soon. They see support for the index in the 14,300-14,430 zone.
Shake Shack stock jumps 6% after burger chain says sales grew in latest quarter (SPY -0.5%). Biggest midday movers: Tesla, General Motors, Wells Fargo and semiconductor shortage hits automakers.
Here is the current market situation from CNN Money
North and South American markets are mixed. The Bovespa is higher by 0.64%, while the S&P 500 is leading the IPC lower. They are down 0.42% and 0.14% respectively.
What Is Moving the Markets
Here are the headlines moving the markets.
OPEC+ Compliance With Production Cuts Slips To 75% OPEC+ groups compliance with the oil production cuts fell to 75 percent in December 2020one of the lowest levels since the pact was enacted in May 2020, tanker tracking firm Petro-Logistics said on Tuesday. According to the companys estimates, even the leader of OPEC and the worlds top oil exporter, Saudi Arabia, saw its compliance decline by 10 percentage points to 92 percent last month. The ten OPEC members part of the OPEC+ pact complied at 82 perce
Overnight, the costs for bond issuers rise
In the past two days, sealed bond deals have indicated that investors now expect higher rates than the existing secondary market rates.
Synopsis
Bank of Baroda, Rural Electrification Corporation, and Indian Bank are now paying about 25-45 basis points higher for three-to-five-year money compared to their own secondary market rates.
MUMBAI: Interest rates are generally directional. When debt costs for some maturities head north, usually the others follow.
That precisely appears to be the outcome of the central bank move to help correct overnight rates. They have risen, and so have the costs for primary bond issues.
(Representative image)
MUMBAI: The government’s Atmanirbhar measures to help businesses hit by the pandemic has addressed a historic problem of power companies, and the banks that lend to them. Following the pandemic, the government allocated a Rs 90,000-crore financial package to assist power distribution companies (discoms) across the country. The funding was to be provided through state-owned financiers Power Finance Corporation and Rural Electrification Corporation.
“Stressed discoms had availed the loans provided by government power financiers and cleared dues to power-generating companies. And the generating companies, in turn, have cleared dues to lenders,” said IDBI Bank deputy MD Samuel Joseph Jebaraj. He added that these were companies that were perennially classified as an SMA (special mention account a term for companies that do not repay in time), and lenders were worried that they would slip into the NPA (non-performing asset) category.