Good morning and happy Monday to you.. This is the daily morning update from NDTV Profit and I'm Alex Mathew. Let's bring you up to speed with everything you need to know as you start the new week.
Equity markets in the Asia-Pacific region have started on the backfoot, tracking cues from US markets, which closed lower at the end of last week. The Nasdaq Composite and S&P 500 dropped over 1%, while the Dow slipped over 300 points in a session with volumes that were just two-thirds of the daily average.
Higher yields in the US have been putting pressure on risk assets and pushing up the dollar in recent days. The yield on the 10-year benchmark Treasury is at a near eight-month high at 4.63%, ending the year about 75 basis points above where they started. This despite the 100 basis points of cuts that the Fed has undertaken. Yields rose after investors reset expectations of the course of monetary policy next year, with Fed Chair Jerome Powell guiding towards a slower pace of rate cuts.
Investors are also a little wary of higher bond issuances when Donald Trump takes over the White House. He has promised tax cuts and no apparent steps for reducing the budget deficit. The higher yields and resultant widening interest rate differentials have kept the dollar in demand — it has gained 6.5% this year against a basket of currencies. The rupee, which was under pressure last week, closed off the low point on Friday at 85.54 against the greenback, down 2.7% for the year.
In more international news, the deadliest air accident ever in South Korea killed 179 people on Sunday, when an airliner belly-landed and skidded off the end of the runway, erupting in a fireball as it slammed into a wall at Muan International Airport. The initial cause of the crash was attributed to a bird strike.
The Jeju Air carrier was arriving from the Thai capital Bangkok with 175 passengers and six crew members on board. It was trying to land shortly after 9:00 a.m. Only two crew members survived and were being treated for injuries, according to the last report.
Aviation experts on Sunday questioned how much impact a potential bird strike cited by authorities could have had in bringing down the aircraft.
And finally, Jimmy Carter, the former Georgia peanut farmer who as US president brokered a historic and lasting peace accord between Israel and Egypt in a single term marred by soaring inflation, an oil shortage and Iran's holding of American hostages, has died. He was 100 years old. The longest-living former US president ever, Carter had opted in early 2023 to spend his remaining time at his home in Plains receiving hospice care.
In the top corporate news back home, JSW Energy on Friday said that its wholly-owned subsidiary has entered into pacts to acquire various companies involved in the energy management and clean energy systems space for a total enterprise value of Rs 12,468 crore.
According to the company, the acquisition “will leapfrog” its locked-in generation capacity by 23% — from 20,012 megawatts to 24,708 MW.
In other news, An IndiGo A320 aircraft operated a "successful" validation flight to Navi Mumbai International Airport on Sunday, becoming the first commercial airliner to touch down on the new runway. The airport will begin operations from April next year, starting with domestic flights.
The second terminal is expected to be operationalised by the end of the financial year ending March 2029.
Keep an eye on the new listings today – there are three to watch for – those are Senores Pharmaceuticals Ltd., Ventive Hospitality Ltd., and Carraro India Ltd.
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