10 things you need to know before the opening bell on May 4

SUMMARY

The global markets slipped on Monday morning after US reports said they have enormous evidence that coronavirus came from a China laboratory, creating massive tensions between the two superpowers. At 7:50 am, the SGX Nifty tanked 479 points or 5 percent to 9,336, indicating a weak start for the Sensex and Nifty50.

By CNBCTV18.comMay 4, 2020 8:07:43 AM IST (Published)

1. Asia: Hong Kong’s Hang Seng index dropped 3.43 percent in early trade, with shares of Chinese tech juggernaut Tencent falling 3.55 percent. Meanwhile, South Korea’s Kospi fell 1.87 percent in morning trade while the Kosdaq index shed 0.31 percent. In Australia, the S&P/ASX 200 slipped 0.25 percent. Overall, the MSCI Asia ex-Japan index traded 2.2 percent lower. Markets in China, Japan and Thailand are closed on Monday for holidays.

2. US: Stock futures fell on Sunday night as traders weighed the reopening of the economy along with brewing tensions between China and the U.S. Dow Jones Industrial Average futures were down by 286 points, pointing to a Monday opening decline of around 281 points. S&P 500 and Nasdaq 100 futures also pointed to losses at the open on Monday for the two indexes.

3. Market At Close: Indian shares jumped more than 3 percent on Thursday witnessing their best month in nearly 11 years, as sentiment improved on promising early results from a COVID-19 drug trial.

4. Crude Oil: U.S. oil moved higher on Friday, with both benchmarks posting their first weekly gain in four weeks as OPEC and its allies embark on record output cuts to tackle a supply glut due to the coronavirus crisis. West Texas Intermediate crude jumped 4.99 percent, or 94 cents, to settle at $19.78 per barrel, after climbing above $20 earlier in the session. Brent futures for July eased 7 cents, or 0.6 percent, to $26.31. The June contract expired on Thursday at $25.27.

5. Rupee Close: Asian shares ticked lower, as did the Indian rupee on Friday in a retreat from the positive mood on display for most of the week, which had been driven by the easing of lockdowns and hopes for a coronavirus treatment. Hence, the Indian rupee ended 0.76 percent or 58 paise higher at 75.11 versus the US dollar, on Friday.

6. PM Modi Meets Finance Minister: Prime Minister Narendra Modi on Saturday held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb spread of coronavirus, sources said.

7. RBI Governor Meets MD Of Banks: Reserve Bank of India Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the COVID-19 crisis. The meeting, which happened in two separate sessions through video conference, saw participation of managing directors and CEOs of major public and private sector banks, the RBI said in a statement after the meeting.

8. US President Trump Pushes For Economic Reopening: Anxious to spur an economic recovery without risking lives, President Donald Trump on Sunday insisted that “you can satisfy both" — see some states gradually lift lockdowns while also protecting people from the coronavirus pandemic that has killed more than 60,000 Americans. The president, fielding questions from Americans in a virtual town hall from the Lincoln Memorial, acknowledged valid fears on both sides of the issue. Some people are worried about getting sick; others are reeling from lost jobs and livelihoods. “We have to get it back open safely but as quickly as possible,” Trump said.

9. Bank Transfer For Women of Jan Dhan To Be Made Today: To help the poor tide over the COVID-19 crisis, the government had on March 26 said ex-gratia payment of Rs 500 would be credited to women Jan Dhan account holders for the next three months, starting from April. "Instalment of Rs 500 for the month of May has been sent to the bank A/cs of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package. Beneficiaries are requested to follow the schedule shared below to visit banks & CSPs. Money can also be withdrawn via ATMs & BCs," Financial Services Secretary Debasish Panda said in a tweet on Saturday.

10. Low Oil Prices End Cooking Gas Subsidy: Lower global oil prices have not helped reduce auto fuel prices for consumers but saved the government from paying subsidy on cooking gas cylinder into the accounts of household beneficiaries. From May, the government will not be paying subsidy into the accounts of domestic LPG customers in all metros under the direct benefit transfer scheme. While the subsidy will be limited to just Rs 2-5 in other cities given the increased cost of transportation and just about Rs 20 per cylinder for 8 crore Ujjwala beneficiaries. All consumers have to pay the market price of a 14.2 kg cylinder upfront.