10 things you need to know before the opening bell on January 15

SUMMARY

The market is likely to open lower today, as the SGX Nifty, an early indicator of the opening for the Indian market, was trading 70.25 points or 0.48 percent lower at 14576.0, at 6:47 am.

By CNBC-TV18Jan 15, 2021 7:55:45 AM IST (Published)

1. Wall Street | Wall Street closed lower on Thursday after making a u-turn toward the end of the session as reports emerged about U.S. President-elect Joe Biden’s pandemic aid proposal following earlier data that showed a weakening labor market. After both touched fresh record highs earlier in the session, the Dow Jones Industrial Average finished down 68.95 points, or 0.22 percent, at 30,991.52 while the Nasdaq Composite dropped 16.31 points, or 0.12 percent, to 13,112.64. The S&P 500 too lost steam toward the end of the day and lost 14.3 points, or 0.38 percent, to close at 3,795.54.

2. Asian Stocks | Asian shares rose on Friday, brushing off a late Wall Street dip as expectations of large U.S. stimulus under President-elect Joe Biden shored up sentiment while oil prices perked up on upbeat Chinese trade figures. The investors held a broadly more optimistic with Australia’s S&P/ASX 200 up 0.2 percent, Japan’s Nikkei 225 0.3 percent higher and South Korea’s KOSPI inching up 0.2 percent.

3. Indian Market | Indian indices ended at a record close on Thursday as IT stocks trimmed some losses after falling in early deals despite robust results of Wipro and Infosys. Gains in FMCG, pharma and auto sectors also lifted the sentiment. The Sensex ended 92 points higher at its closing high of 49,578 while the Nifty rose 31 points to its record close of 14,595. Heavyweights TCS, RIL, L&T and ITC contributed the most to the benchmarks. The Nifty energy index was the top index gainer, rising 1.4 percent.

4. Crude Oil | Oil prices edged higher on Thursday boosted by a weak dollar and bullish signals from Chinese import data but pressure renewed worries about global oil demand. Brent crude oil futures rose 26 cents, or 0.5 percent, to $56.32 a barrel by 1:09 p.m. ET (1809 GMT). U.S. West Texas Intermediate (WTI) gained 54 cents, or 1 percent, to $53.45.

5. Rupee | The rupee gained for the third straight day and closed 11 paise higher at 73.04 against the US dollar on Thursday, supported by sustained foreign fund inflows and weak American currency. At the interbank forex market, the rupee opened at 73.18 and hit an intra-day high of 72.97 and a low of 73.18. It finally finished at 73.04, higher by 11 paise over its last close. Over the last three days, the rupee has added 36 paise in its valuation against the American currency.

6. Dovish Powell | Fed Chair Jerome Powell confirmed the dovish overtones of recent Fedspeak. He confirmed that the Fed would await for a sustainable overshoot of their 2 percent inflation target, and would not seek to “hike rates anytime soon.” Powell also emphasized that the Fed’s approach would be less mathematical, but rather more focused on judgement decisions. Dovish overtones were also noted on the subject of tapering, with Powell stating that markets would be given large indications ahead of potential changes to the pace of asset purchases.

7. U.S. Data | U.S. jobless claims moved higher & printed over consensus expectations at 965k (789k expected, 787k prior). Continuing claims also increased and came at 5271k (5150k expected, 5072k prior).

8. American rescue plan | US President-elect Joe Biden unveiled a $1.9 trillion rescue plan designed to jump-start the economy and speed up the U.S. response to the coronavirus pandemic. It includes $415 billion to bolster the response to the virus and the rollout of COVID-19 vaccines, some $1 trillion in direct relief to households, and roughly $440 billion for small businesses and communities particularly hard hit by the pandemic. Stimulus payment checks would be issued for $1,400 - topping up the $600 checks issued under the last congressional stimulus legislation. Supplemental unemployment insurance would also increase to $400 a week from $300 a week now and would be extended to September.

9. Gold | Gold edged up in choppy trade on Thursday as data showing a weak US labor market bolstered bets for more government stimulus, buoying bullion's appeal as an inflation hedge and countering pressure from a resilient dollar. Spot gold was up 0.2 percent at $1,847.36 per ounce at 10:56 a.m. EST (1556 GMT), while U.S. gold futures fell 0.4 percent to $1,846.70.

10. Chinese Imports and Exports | Chinese exports grew more than expected in December, customs data showed on Thursday, as coronavirus disruptions around the world fuelled demand for Chinese goods even as a stronger yuan made exports more expensive for overseas buyers. Exports rose 18.1 percent in December from a year earlier, slowing from a 21.1 percent jump in November but beating expectations for a 15 percent rise. Imports increased 6.5 percent year-on-year last month, topping a 5 percent forecast and picking up pace from November's 4.5 percent growth.