Friday, December 3

Month: December 2020

Dollar Down, With ‘Twin Deficits’ Likely to Extend Dollar Weakness Into 2021
Forex

Dollar Down, With ‘Twin Deficits’ Likely to Extend Dollar Weakness Into 2021

By Administrator_India Capital Sands The dollar was down on Thursday morning in Asia. It ended 2020 on a down note over bets that a global economic recovery in 2021 will pull money into riskier assets, even as the growing U.S. ‘twin deficits’ of a huge budget increase and trade deficits argue for an ever-cheaper greenback. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.06% to 89.498 by 8:54 PM ET (1:54 AM GMT). The dollar saw its lowest level since April 2018 and is down 7.2% on the year. Hopes that 2021 will be better than 2020 have led to a retreat from the safe-haven dollar, with investors increasingly turning to the more attractive riskier assets, particularly in emerging markets. Bears have also been resurrecting the ‘twi...
India behind only China in cornering EM inflows in CY20, shows data
India

India behind only China in cornering EM inflows in CY20, shows data

By Administrator_India Capital Sands India has cornered the biggest chunk of overseas investor flows into the emerging markets, after China, in CY20. FPI flows in India for the year stood at $22.6 billion, 58 per cent higher than that in 2019, with energy and financials absorbing the biggest share of flows. The flows were largely driven by easy liquidity sloshing across the globe which found its way into emerging markets. India-dedicated funds, however, have seen outflows to the tune of $9.1 billion in CY20, the EPFR data compiled by Kotak Institutional Equities shows. India also benefited from relatively low flows to China as global sentiment towards that country soured somewhat after the Covid outbreak. Yet, China managed to edge out India, with foreign flows to the tune of $...
US House approves Donald Trump’s $2,000 checks, sending to GOP-led Senate
U.S

US House approves Donald Trump’s $2,000 checks, sending to GOP-led Senate

By Administrator_India Capital Sands The House has voted to increase COVID-19 relief checks to USD 2,000, meeting President Donald Trump's demand for bigger payments and sending the bill to the GOP-controlled Senate, where the outcome is uncertain. Democrats led passage, 275-134, their majority favouring additional assistance. They had settled for smaller USD 600 payments in a compromise with Republicans over the big year-end relief bill Trump reluctantly signed into law. The vote divides Republicans who mostly resist more spending. But many House Republicans joined in support, despite being wary of bucking the president. Senators are set to return to session on Tuesday to consider the measure.  
Joe Biden as US President may review ‘mini deal’ with India
U.S

Joe Biden as US President may review ‘mini deal’ with India

By Administrator_India Capital Sands A “limited” trade deal between India and the US, which was on the verge of conclusion before the US Presidential polls last month, is unlikely to see the light of the day at least before the second half of 2021, a source told FE. The deal was expected to cover an annual goods trade of about $13 billion, or roughly 15% of the bilateral shipments (in FY20). “With Joseph Biden at the helm of affairs in the US, there would be a fresh review of the deal. It may be pushed back to the second half of the next year, or even further,” the source said. “However, the good thing is that the scope of the deal can be expanded in this process to include more products,” he added. Despite differences over offers, both India and the US negotiated the mini deal...
France reopens UK border for travellers who are Covid-free
UK

France reopens UK border for travellers who are Covid-free

By Administrator_India Capital Sands Freight from Britain and passengers with a negative virus test began arriving on French shores Wednesday, after France relaxed a two-day blockade over a new virus variant that had isolated Britain, stranded thousands of drivers and raised fears of shortages. Associated Press reporters witnessed a ferry pulling into the French port of Calais before dawn and trains carrying freight and car passengers were allowed to cross to the continent beneath the English Channel again. People arriving from Britain are required to have a virus test capable of detecting the new variant, according to a late-night agreement reached after 48 hours of frenzied negotiations among French, British and EU authorities. European nations and others around the world beg...
New coronavirus variant found in UK is not out of control yet: WHO
Coronavirus News

New coronavirus variant found in UK is not out of control yet: WHO

By Administrator_India Capital Sands The new coronavirus variant found in UK is not out of control yet, said the World Health Organization. "We have had a much higher (contamination rate) at different points in this pandemic and we've got it under control," WHO's emergencies chief Michael Ryan told a press conference. "So this situation is not in that sense out of control. But it cannot be left to its own devices." The World Health Organization (WHO) will convene a meeting of members to discuss strategies to counter a new, more infectious coronavirus strain that emerged in Britain, its European chief said on Tuesday. He did not give a date for the meeting. "Limiting travel to contain spread is prudent until we have better info. Supply chains for essential goods & essenti...
Oil tumbles as new virus strain revives demand fears
Commodity

Oil tumbles as new virus strain revives demand fears

By Administrator_India Capital Sands Oil prices tumbled on Monday as a fast-spreading new coronavirus strain that has shut down much of Britain and led to tighter restrictions in Europe sparked worries about a slower recovery in fuel demand. Brent crude was down $2.23, or 4.3%, at $50.03 a barrel by 1421 GMT, while U.S. West Texas Intermediate (WTI) crude fell $2.21, or 4.5%, to $46.89. Both contracts had lost as much as $3 earlier in the session, their biggest daily drop in six months. "Reports of a new strain of the coronavirus has weighed on risk sentiment and oil. New mobility restrictions across Europe are also not helping as European oil demand will suffer," said UBS oil analyst Giovanni Staunovo. "Investors need to be mindful that the road to higher oil demand and ...
UK could agree on ‘mini deals’ with European Union if trade talks fail
UK

UK could agree on ‘mini deals’ with European Union if trade talks fail

By Administrator_India Capital Sands UK Cabinet Office Minister Michael Gove said that Britain and the European Union could engage in a series of “mini unilateral” deals if no trade agreement is reached by the end of the month. Gove said that Britain and the bloc’s 27 member states could form a new “special relationship” after the end of the transition period, close to the UK and US link, which could include agreements he described as “side deals,” the Telegraph reported. Any trade agreement is “realistically unlikely” to be approved until after Christmas, meaning that lawmakers may only vote on a potential deal just hours ahead of the end of the transition period, he said. Speaking in Parliament last week, Gove said that like any set of neighbors, there will be conversations betw...
Bitcoin

Bitcoin tops $23,000; may climb to about $400,000, says analyst

By Administrator_India Capital Sands Bitcoin breached $23,000 for the first time in history as more Wall Street names crowd into the the world’s largest digital currency up 220 per cent this year. As momentum builds, analysts predict more gains ahead. The digital coin jumped more than 9 per cent on Thursday, touching a high of $23,256.92, according to a composite of prices compiled by Bloomberg. Bitcoin and the wider Bloomberg Galaxy Crypto Index have both more than tripled this year. Cryptocurrency-linked stocks in South Korea, Japan and China climbed. The rally in digital assets is polarizing opinion, given Bitcoin’s history of boom and bust. Proponents argue the cryptocurrency is muscling in on gold as a portfolio diversifier amid dollar weakness and potential inflationary p...
Sensex, Nifty capture new heights on positive global cues; HDFC, ONGC gain
Stock Market

Sensex, Nifty capture new heights on positive global cues; HDFC, ONGC gain

By Administrator_India Capital Sands Equity benchmarks Sensex and Nifty raced to new peaks on Wednesday as participants took note of continuously improving macroeconomic indicators and positive trends in global markets. The BSE Sensex settled 403.29 points or 0.87 per cent higher at 46,666.46, while the NSE Nifty climbed 114.85 points or 0.85 per cent to 13,682.70 — record closing for both the benchmarks. Both the indices also marked their all-time intra-day highs of 46,704.97 and 13,692.35, respectively. In the Sensex pack, HDFC, ONGC, Bharti Airtel, Titan, Asian Paints, Mahindra and Mahindra and TCS were the prominent gainers. On the other hand, ICICI Bank, IndusInd Bank, NTPC, UltraTech Cement, Tech Mahindra and SBI were among the major laggards. Asian bourses closed b...