GLOBAL MARKETS-Asian shares hit 2-yr high after Fed signals gradual tightening
* Fed policymakers support gradual reduction in balance sheet
To access the newsletter, click on the link: here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH 5:30 pm: Government to release November consumer price inflation data. LIVECHAT - COMMODITIES OUTLOOK with Jonathan Barratt, Economist, CIO Ayers Alliance and Principal at Celsiuspro.com Commodity prices are going through the roof, giving some stunning returns for those brave and patient enough to have ventured against the bear market in base metals that has dominated since 2011. Meanwhile, oil prices are settling down as doubts emerge over OPEC's implementation of the agreed output cut. With expectations running high of rate cut by the Fed on December 14, Jonathan joins us to discuss his 2017 outlook on commodities at 9:30 am. To join the conversation, click on the link: here INDIA TOP NEWS Cyclone batters south India coast killing four A cyclone barrelled into the southeast coast of India on Monday, killing at least four people and bringing down trees and power lines as authorities moved tens of thousands of people from low-lying areas. Central bank says no move to cancel Axis Bank licence The Reserve Bank of India on Monday denied a media report that authorities were preparing to cancel the licence of Axis Bank Ltd over irregularities in transactions relating to the exchange of high-value bank notes. Top gold import bank suspends bullion dealers accounts Axis Bank Ltd, India's top importer of gold, has suspended the bank accounts of some bullion dealers and jewellers after two of its executives at a branch were arrested over alleged money laundering. Morgan Stanley opens book for Tata Motors' shares worth up to $371 million - termsheet Morgan Stanley has started the process for an undisclosed buyer to for up to 50 million shares of Tata Motors Ltd from the market in a potential 24.99 billion-rupee ($370.8 million) deal, according to a termsheet seen by Reuters on Monday. Generic copy of Roche flu pill Tamiflu hits U.S. market The first generic copy of Roche's top-selling flu pill Tamiflu hit the U.S. market on Monday. Alvogen, which developed the cut-price version with India's Natco Pharma, said it expected the cheaper product to save the U.S. healthcare system up to $500 million in the upcoming flu season. GLOBAL TOP NEWS Exxon CEO could face struggle getting confirmed as Trump secretary of state Exxon Mobil Chief Executive Rex Tillerson, the front-runner to be named secretary of state in President-elect Donald Trump's administration, faces a struggle getting confirmed by U.S. senators concerned about his close ties to Russia. EXCLUSIVE-Fox nears firm bid for Sky via scheme of arrangement - sources Rupert Murdoch's Twenty-First Century Fox aims to table a firm cash bid valuing British broadcaster Sky at 10.75 pounds per share as early as Wednesday for the 61 percent of the company it does not already own, four people familiar with the matter said. EXCLUSIVE-Some Bangladesh Bank officials involved in heist -investigator Some Bangladesh central bank officials deliberately exposed its computer systems and enabled hackers to steal $81 million from its account at the Federal Reserve Bank of New York in February, a top police investigator in Dhaka told Reuters on Monday. LOCAL MARKETS OUTLOOK (As reported by NewsRise) The SGX Nifty Futures was trading at 8,197.50, up 0.21 pct from previous close. The Indian rupee will likely open little changed to lower against the dollar, tracking lacklustre trade across Asian currencies, as investors stay on the sidelines ahead of the Federal Reserve's policy review that begins today. Indian government bonds will likely open higher amid value buying, as the central bank's move to revoke the temporary mandate for lenders to maintain incremental reserve on deposits will free up cash, which may course its way to debt. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.39 pct-6.45 pct band. GLOBAL MARKETS The S&P 500 and Nasdaq Composite fell on Monday after six sessions of gains, weighed by tech sector stocks, while a rally in energy shares petered out as crude oil gains withered. Asian shares were on tenterhooks as investors awaited the Federal Reserve's meeting that begins later in session for clues on the outlook for U.S. monetary policy, while crude oil prices pulled back after their surge to 18-month highs. The dollar eased against the yen, coming off a 10-month high, as a surge in Treasury yields was tempered for the time being. U.S. Treasury yields rose on Monday, with benchmark 10-year notes climbing to more than two-year peaks, after oil prices increased and as investors braced for a widely expected interest rate increase from the Federal Reserve this week. Oil prices were firm as the first signs of a crude production cut organised by OPEC and other exporters materialised, tightening a market that has been grappling with ballooning oversupply for over two years. Gold held gains after inching up in the previous session, with U.S. Treasury yields coming off their highs and the U.S. dollar falling ahead of the start of a two-day Federal Reserve meeting. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 67.46/67.49 December 9 - -$54.29 mln 10-yr bond yield 6.65 pct Month-to-date $74.91 mln -$2.43 mln Year-to-date $4.23 bln -$5.57 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 = 67.42 Indian rupees) (Compiled by Astha Rawat in Bengaluru)
* Fed policymakers support gradual reduction in balance sheet
May 25 The following table shows rates for Asian currencies against the dollar at 0142 GMT. CURRENCIES VS U.S. DOLLAR Change on the day at 0142 GMT Currency Latest bid Previous day Pct Move Japan yen 111.660 111.49 -0.15 Sing dlr 1.384 1.3844 +0.00 Taiwan dlr 30.091 30.183 +0.31 Korean won 1118.300 1126.8
BEIJING, May 25 The International Monetary Fund (IMF) said on Thursday it approved a three-year financial arrangement of about $434.3 million to support Mongolia's economic reform programme.