To access a PDF version of this newsletter, please click here here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH 10:30 am: Prime Minister's Economic Advisory Council Member Ashima Goyal and SBI Group Chief Economic Advisor Soumya Kanti Ghosh at a conference in Mumbai. 2:00 pm: Parliamentary Affairs Minister Pralhad Joshi media briefing post conclusion of Parliament session in New Delhi. INDIA TOP NEWS • India's rising retail prices stokes worries of stagflation India's retail price inflation in November jumped to a 40-month high, at a time when growth in Asia's third largest economy has slowed to a six-year low, prompting some economists to warn that the country could be entering into a stagflationary phase. • Deloitte Haskins failed to meet standards in IL&FS unit audit - Indian watchdog Deloitte Haskins and Sells failed to meet auditing standards when it vetted the books of India's IL&FS Financial Services for the 2017/2018 financial year, the audit watchdog said on Thursday. GLOBAL TOP NEWS • China to buy $50 billion in U.S. farm products in return for tariff concessions-U.S. sources The White House has agreed to suspend some tariffs on Chinese goods and reduce others in return for Beijing's pledge to hike purchases of U.S. farm products in 2020, sources said on Thursday, taking a step towards de-escalating the trade war between the world's two biggest economies. • UK on track for Brexit as election landslide looms for Johnson Prime Minister Boris Johnson's Conservative Party was on course for a resounding victory in Britain's election after voters backed his bid to deliver Brexit on Jan. 31, the country's most significant geopolitical move in 70 years. • Japan business mood gloomiest in nearly 7 years as trade war bites Japanese big manufacturers' business mood sank to a near seven year low in the fourth quarter, a closely watched central bank survey showed, as the U.S.-China trade war and soft global demand weighed on the export-reliant economy. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.3% higher at 12,056.50. • The Indian rupee is expected to open higher against the dollar after U.S. President Donald Trump reportedly signed off on a trade deal with China, triggering the biggest advance on the yuan in a year. • Indian federal government bonds are likely to fall as a higher-than-expected inflation print has quashed hopes of policy easing early next year. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.78%-6.85% today, a trader with a private bank said. GLOBAL MARKETS • Wall Street's main indexes hit record highs on Thursday following news that the United States had reached a "deal in principle" with China to resolve a trade war that has rattled markets for nearly two years. • Asian share markets jumped as a last-gasp Sino-U.S. trade deal and a likely major election win by Britain's Conservative Party looked to have cleared a couple of dark clouds from the global horizon. • The pound rose to a three-and-a-half year high versus the euro and the highest in more than a year versus the dollar after exit polls suggested a win for the Conservatives, which should help ensure the UK's smooth exit from the European Union. • U.S. Treasury yields spiked on Thursday, with most maturities hitting four-week highs, after the United States offered to cut tariffs on existing Chinese goods and suspend those scheduled to take effect on Dec. 15, a precursor to a possible trade deal. • Oil prices extended gains, scaling three-month highs as the United States and China moved closer to a resolution to the 18-month trade war between the world's two biggest economies that has raised big questions about global demand for crude. • Gold prices fell after sources said Washington and Beijing had reached an interim trade deal and averted a fresh round of U.S. tariffs, boosting appetite for riskier assets. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.61/70.64 December 12 384.09 crore 555.51 crore 10-yr bond yield 6.77% Month-to-date (807) crore (1,446) crore Year-to-date 92,977 crore 29,052 crore (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 71.77 Indian rupees) (Compiled by Nidhi C Sai in Bengaluru)
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