Markets & Finance News

The Turkish lira pulled back on Tuesday from a record low of 7.24 a day earlier after the central bank pledged to provide liquidity in response to a meltdown which has unsettled global markets.

The Turkish lira weakened slightly to 6.92 against the dollar on Tuesday morning, having pulled back from a record low of 7.24 a day earlier after the central bank pledged to provide liquidity.

* China's economy cools further, investment growth at record low (Adds details, updates prices)

(Morning News Call - India edition will not be published on Wednesday, August 15 as markets are closed for Independence Day) To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_08142018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 12:00 pm: Government to release July wholesale price inflation data in New Delhi. LIVECHAT - FED WATCH Reuters reporters and editors tracking the Federal Reserve take questions on the economics, politics, trade matters and rates policies facing America's central bank and others whose decisions drive markets day in and day out at 7:30 pm IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India's July inflation eases, RBI may hold on rates India's retail inflation rate eased in July, strengthening views that the central bank will keep interest rates on hold at its review in October after raising them for a second straight meeting on Aug. 1. • India's Tata Steel first quarter profit more than doubles Tata Steel's quarterly net profit more than doubled, but still came in well below market expectations, hurt by rising expenses and a one-off charge. • SEBI proposes changes to consent settlement rules India's capital markets regulator has proposed changes to the country's consent settlement rules, according to a review panel report, as it tries to reduce recourse to the courts and make it easier to do business in Asia's third largest economy. • Indian Oil sees no impact from U.S. sanctions on refinery JV investment with Iran Indian Oil's planned $5.10 billion expansion of its unit Chennai Petroleum, partly owned by Iran, is not expected to be hit by U.S. sanctions against Tehran, Chairman Sanjiv Singh said on Monday. • Jet Airways says evaluating funding options to meet liquidity needs Indian carrier Jet Airways has said it is considering various options on priority to meet its funding requirements, reaffirming that its revenue-boosting and cost-cutting measures have started to show results. • Infosys to build software development centre in eastern India Indian information technology company Infosys said on Monday it would open a software development centre in the eastern state of West Bengal, with an investment of about 1 billion rupees. • Oil India's quarterly profit jumps 56 percentt, but misses estimate Oil India reported a 56 percent rise in first-quarter profit on Monday, helped by higher revenue from the crude oil segment, but missed analysts' estimates. • KKR plans to list its Indian businesses on local exchange - FT Investment firm KKR & Co plans to list a bulk of its operations in India on the local stock exchange, the Financial Times reported on Monday, citing four people involved in the matter. GLOBAL TOP NEWS • Trump signs defense policy bill with watered-down China measures U.S. President Donald Trump signed a $716 billion defense policy bill on Monday that authorizes military spending and includes watered-down controls on U.S. government contracts with China's ZTE and Huawei Technologies. • China's economy cools further, investment growth at record low China's economy is showing further signs of cooling as the U.S. prepares to impose even tougher trade tariffs, with investment in the first seven months of the year slowing to a record low and retail sales softening, data showed on Tuesday. • Iran's Khamenei rejects Trump offer of talks, chides government over economy Iran's Supreme Leader on Monday rejected U.S. President Donald Trump's offer of unconditional talks to improve bilateral ties and he also accused the Iranian government of economic mismanagement in the face of reimposed U.S. sanctions. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were little changed at 11,390.00. • The Indian rupee is expected to open little changed against the dollar amid lingering pressure on emerging market currencies and risk assets on account of Turkey’s currency woes. However, India’s slower-than-expected July retail inflation could provide support to the rupee, traders said. • Indian government bonds will likely open higher amid a slower-than-expected rise in the key retail inflation rate, which further pushed back interest rate hike concerns. However, movement of the rupee, which slumped to a record-low yesterday, will remain crucial guidance for rest of the session for bonds, dealers said. Yield on the benchmark 7.17 percent bond maturing in 2028 will likely to trade in a 7.77 percent-7.84 percent band today. GLOBAL MARKETS • U.S. stocks dropped on Monday as global jitters from Turkey's plummeting currency spread to Wall Street, with the S&P 500 and the Dow falling for the fourth session in a row. • Asian share markets fought to regain their footing as tremors from the collapse of the Turkish lira ebbed, though sentiment took a fresh knock when Chinese economic data proved softer than expected. • The euro hovered near one-year lows against the dollar and the Swiss franc as the Turkish lira wobbled, on worries economic troubles in Turkey could hit European banks and spread to other emerging economies. • U.S. Treasury yields recovered from four-week lows on Monday, with concerns about the global impact of the Turkish crisis easing somewhat after the country's central bank came out with measures to stabilize the plunging lira. • Oil prices rose after a report from OPEC confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply. • Gold prices traded steady, but hovered close to an 18-month low, as the U.S. dollar pared gains after posting a 13-month high in the previous session. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 69.81/69.84 August 13 --- -$182.06 mln 10-yr bond yield 7.82 pct Month-to-date $406.75 mln $686.23 mln Year-to-date -$172.76 mln -$5.06 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 = 70.0150 Indian rupees)

Asian share markets fought to regain their footing on Tuesday as tremors from the collapse of the Turkish lira ebbed, though sentiment took a fresh knock when Chinese economic data proved softer than expected.

The euro hovered near one-year lows against the dollar and the Swiss franc on Tuesday as the Turkish lira wobbled, on worries economic troubles in Turkey could hit European banks and spread to other emerging economies.

Asia share markets tried to regain their footing on Tuesday as tremors from the collapse of the Turkish lira ebbed a little and Wall Street proved resilient to the shockwaves.

White House economic adviser Kevin Hassett said on Monday the Trump administration is monitoring the financial situation in Turkey "very closely" after the Turkish currency fell to a record low against the U.S. dollar on Monday.

White House national security adviser John Bolton met on Monday with Turkey's ambassador to the United States to discuss Turkey's detention of American pastor Andrew Brunson, the White House said.

White House economic adviser Kevin Hassett said on Monday the Trump administration is monitoring the financial situation in Turkey "very closely" after the Turkish currency fell sharply against the dollar in recent days.