10 things you need to know before the opening bell on August 16

SUMMARY

Indian shares are likely to open higher on Friday amid expectations the government will soon announce steps to revive sluggish economy. Meanwhile, Asian shares traded lower as conflicting messages on the Sino-U.S. trade war only added to worries for the global economy. At 07:05 AM, the SGX Nifty futures traded 0.40 percent up at 10,940.50, indicating a positive start for the Sensex and the Nifty.

By CNBC-TV18Aug 16, 2019 7:18:41 AM IST (Published)

1. Asia: Asian shares were heading for weekly losses on Friday as conflicting messages on the Sino-U.S. trade war only added to worries for the global economy, while talk of aggressive central bank stimulus drove bond yields to fresh lows. Japan's Nikkei fell 0.5 percent, making a loss of 1.8 percent on the week, while commodity-exposed Australia was heading for a weekly drubbing of 2.7 percent.

2. US: The S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset recessionary fears amid the simmering U.S.-China trade tensions. The Dow Jones Industrial Average rose 99.97 points, or 0.39 percent, to 25,579.39, the S&P 500 gained 7 points, or 0.25 percent, to 2,847.6, and the Nasdaq Composite dropped 7.32 points, or 0.09 percent, to 7,766.62.

3. Markets At Close On Wednesday: Equity benchmarks regained Tuesday's losses following strong global cues. Easing inflation numbers too helped the recovery in domestic market sentiment, traders said. After surging 515 points during the session, the 30-share Sensex settled 353.37 points or 0.96 percent higher at 37,311.53. Similarly, the broader NSE Nifty reclaimed the 11,000 mark, jumping 103.55 points or 0.95 percent to 11,029.40.

4. Crude Oil: Crude oil prices rose on Friday after two days of declines, buoyed following data showing a rise in U.S. retail sales helped ease some concerns about a recession in the world's biggest economy. Brent crude was up 31 cents, or 0.5 percent, at $58.54 a barrel at 0047 GMT. U.S. crude was up 43 cents, or 0.8 percent, at $54.90 a barrel.

5. Currency: Rebounding from six-month lows, the rupee advanced 13 paise to close at 71.27 against the US dollar on Wednesday amid easing oil prices and gains in the domestic equity market. Forex traders said the US delaying new tariffs on Chinese electronics goods as well as encouraging macroeconomic data also boosted investor sentiment., reported PTI.

7. Trade Talks: US President Donald Trump said on Thursday that US and Chinese negotiators were holding “productive” trade talks and expected them to meet in September despite US tariffs on over $125 billion worth of Chinese imports taking effect Sept 1, reported Reuters.

9. CCI Approvals Under Insolvency Law: Suggesting substantial changes to competition regulatory framework, a government-constituted high level panel has recommended a green channel for automatic approval of certain combinations, including those under the insolvency law, by the Competition Commission. Under the Competition Act, combinations (mergers and acquisitions) beyond a certain threshold require clearance from the Competition Commission of India (CCI). The panel has suggested a "green channel route" for automatic approval of certain combinations.

10. SBI Study On Economic Slowdown: The current economic slowdown can be attributed to a combination of structural and cyclical factors, in addition to global uncertainties, an SBI study said on Wednesday. The country's economy is showing signs of slowdown, with hi-frequency indicators like industrial output posting subdued growth and automobile sales touching historical lows. "The reasons for the current domestic slowdown, apart from the global uncertainties look like a combination of both structural and cyclical factors," SBI said in its research report 'Ecowrap'. It said there are clearly a host of structural factors that are holding back current consumption.