GMF: BITCOIN FOCUS While most feel that bitcoin has been enveloped in bouts of volatility, its 3- month volatility is at medium-term lows. What more can be expected from the king of cryptocurrencies? We speak to our forum member-turned-guest, Stephen Quan from Quan Holdings, at 09:30 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India likely to miss fiscal deficit target due to fuel excise duty cut - Moody's India is likely to overshoot its fiscal deficit target for 2018/19 by a small margin following its decision to cut fuel excise duties, Moody's Investors Service said on Tuesday, describing the move as "credit negative".
• State Bank of India ups target for loan portfolio purchase from NBFCs Top lender State Bank of India said it is stepping up its target to buy "good quality" asset portfolios from non-banking financial companies (NBFC).
• India to export raw sugar for first time in 3 years as global prices rally Indian sugar mills have signed deals to export raw sugar for the first time in three years as a rally in New York prices to seven-month highs along with government subsidies made exports lucrative, five dealers and two industry officials told Reuters.
• WhatsApp builds system to comply with India's payments data storage norms WhatsApp has built a system to store payment-related data in India, in line with a central bank directive that all such data must only be stored locally, as the Facebook-owned messenger looks to deepen its offerings in its biggest market by users.
• Work stalls in many small factories in Indian PM's home state after attacks on migrants Mukesh Patel's factory making decorative lights sits eerily silent during what should be one of its busiest times of the year. Work at the plant in Ahmedabad, the largest city in India's western state of Gujarat, has come to a standstill just ahead of India's crucial festival shopping season as dozens of his workers have fled the state.
GLOBAL TOP NEWS • Global financial stability risks rising with trade tensions, IMF says Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said.
• Japan August core machinery orders point to more capex gains Japan's core machinery orders unexpectedly rose in August after robust gains in the previous month in a sign that capital spending is set to grow as companies invest in new equipment and software to manage labour shortages.
• Trump's U.N. envoy Haley resigns, rules out 2020 run for office Nikki Haley, a rising Republican star, said on Tuesday she was stepping down as U.S. ambassador to the United Nations, but knocked down speculation that she might challenge President Donald Trump at the next election.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading up 0.3 percent at 10,343.50, from its previous close.
• The Indian rupee is expected to open higher against the U.S. currency amid a media report that policymakers are considering tapping citizens overseas for dollar flows as early as this month. Falling Treasury yields, which propped up Asian currencies, are also expected to support the rupee.
• Indian government bonds will likely edge higher as the U.S. Treasury yields eased from multi-year highs and as the Reserve Bank of India will hold an open market purchase of bonds on Thursday. The yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a 8.04 percent-8.10 percent band today.
GLOBAL MARKETS • The Dow and S&P 500 ended slightly lower on Tuesday as investors, worried about global growth prospects, fled from materials and industrials stocks but falling bond yields kept declines in check in the three major indexes.
• Asian shares steadied in early trade after world stocks hit eight-week lows the previous day on worries about global economic growth, although the pound stayed firm on hopes for a Brexit deal.
• The dollar slipped further from seven-week highs after U.S. Treasury yields edged lower overnight while sterling took some comfort on hopes Britain and the European Union might be close to a Brexit deal.
• U.S. long-dated Treasury yields fell on Tuesday in choppy trading, as investors took a respite from selling bonds that took rates to multi-year highs following recent economic data and on interest rate prospects over the next year and a half.
• Oil prices edged lower after the IMF lowered its global growth forecasts but prices were supported as Hurricane Michael churned towards Florida, causing the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude output.
• Gold prices crawled higher as long-dated U.S. Treasury yields retreated from multi-year highs, pressuring the dollar.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 74.25/74.28 October 9 -$167.09 mln -$97.06 mln 10-yr bond yield 8.08 pct Month-to-date -$1.58 bln -$786.47 mln Year-to-date -$3.75 bln -$7.54 bln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 74.3300 Indian rupees) (Compiled by Debanjan Bose in Bengaluru)
