Here are the key things investors should know before the market opens today:
Wall Street ends lower
In overnight trade, U.S. stocks stabilized as investors grew nervous over CPI inflation data and corporate earnings that could potentially influence the Federal Reserve to continue its aggressive policy and offer a further increase in interest rates later this month. Banking majors JPMorgan and Morgan Stanley will release their June quarter results on Thursday, while Citigroup and Wells Fargo will report on Friday. The Dow Jones Industrial Average ended down 0.5%, the S&P 500 lost 1.2% and the tech-heavy Nasdaq Composite fell 2.3%.
Asian stocks fall on Covid worries
Asia-Pacific stocks were reeling from selling at the start of trading on Tuesday, after a negative finish on Wall Street overnight as well as a fresh outbreak of Covid-19 in China that could lead to lockdown restrictions and affect global economic growth. On Sunday, Shanghai, China reported its first case of the highly contagious BA.5 omicron subvariant, raising fears of new lockdown measures to contain the spread of the deadly virus.
Mainland China markets declined, with the Shanghai Composite and Shenzhen Component falling 0.2% and 0.3% respectively.
Taiwan’s weighted index was the region’s worst performer with a sharp drop of 2.2%, followed by Japan’s regional heavyweight Nikkei 225, which fell 1.8% in early trading.
In a similar trend, South Korea’s Kospi lost 1.1% and Hong Kong’s Hang Seng index fell 0.8%.
Contrary to the trend, Australia’s ASX 200 rose 0.2%, the Singapore Straits Times gained 0.4% and Indonesia’s Jakarta Composite traded flat with marginal gains.
Crude prices drop 1%
The price of Brent and U.S. crude fell nearly 1% in early trade on Tuesday amid fears of potential lockdowns in China following the outbreak of a deadly new variant of Covid-19 in Shanghai that could affect oil demand. In Asian trading hours on Monday, Brent oil for September delivery fell 0.84% to $106.2 a barrel, while August US West Texas Intermediate (WTI) crude futures fell 0.95% to $103.10 a barrel.
FII continue to sell without counting
Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market on July 11, while domestic institutional investors (DIIs) also turned net sellers. According to exchange data, FIIs sold shares worth ₹170.5 crore, while DIIs sold shares worth ₹297 crore.
Companies to report their June quarter results on July 12 include HCL Technologies, Anand Rathi Wealth, Artson Engineering, Delta Corp, Goa Carbon, Plastiblends India, Roselabs Finance, Sterling and Wilson Renewable Energy, Shree Ganesh Remedies, Swiss Military Consumer Goods , Trident Texofab and Virinchi.