Business News, Strategy, Finance and Corporate Insight

Here are the key things investors should know before the market opens today:

Wall Street ends lower

In the overnight trade, the U.S. stocks settled lower as investors turned jittery ahead of CPI inflation data and corporate earnings that may potentially influence the Federal Reserve to continue its aggressive policy stance and deliver another interest rate increase later this month. The banking majors JPMorgan and Morgan Stanley will release their June quarter earnings on Thursday, while Citigroup and Wells Fargo on Friday. The Dow Jones Industrial Average ended 0.5% lower, the S&P 500 shed 1.2%, and the tech-heavy Nasdaq Composite dropped 2.3%.

Asian stocks fall on Covid concerns

Shares in the Asia-Pacific region were reeling under selling stress in early trade on Tuesday, following a negative finish on Wall Street overnight as well as a fresh Covid-19 outbreak in China which could lead to lockdown restrictions and affect global economic growth. On Sunday, China’s Shanghai reported its first case of the highly contagious BA.5 omicron sub-variant, raising fears of more lockdown measures to contain the spread of the deadly virus.

Markets in mainland China were down, with the Shanghai Composite and the Shenzhen Component falling 0.2% and 0.3%, respectively.

The Taiwan Weighted Index was the worst performer in the region with a sharp decline of 2.2%, followed by regional heavyweight Japan’s Nikkei 225, which dropped 1.8% in early trade.

In a similar trend, South Korea’s Kospi shed 1.1% and the Hang Seng index in Hong Kong tumbled 0.8%.

Bucking the trend, Australia’s ASX 200 rose 0.2%, Singapore Straits Times gained 0.4%, and Jakarta Composite in Indonesia was trading flat with marginal gains.

Crude prices drop 1%

The price of Brent and U.S. crude fell nearly 1% in early trade on Tuesday amid fear of potential lockdowns in China following the outbreak of a new deadly Covid-19 variant in Shanghai that could hit oil demand. In Asian trading hours on Monday, the Brent oil for September delivery was down 0.84% to $106.2 per barrel, while the U.S. West Texas Intermediate (WTI) crude August futures were down 0.95% at $103.10 a barrel.

FIIs continue selling spree

The foreign institutional investors (FIIs) continued their selling spree in the Indian equity market on July 11, while domestic institutional investors (DIIs) also turned net sellers. As per the exchange data, FIIs net sold shares worth ₹170.5 crore, while DIIs offloaded shares worth ₹297 crore.

Corporate results

The companies which will release their June quarter earnings on July 12 include HCL Technologies, Anand Rathi Wealth, Artson Engineering, Delta Corp, Goa Carbon, Plastiblends India, Roselabs Finance, Sterling and Wilson Renewable Energy, Shree Ganesh Remedies, Swiss Military Consumer Goods, Trident Texofab, and Virinchi.

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