Wednesday Morning Briefing: Asian Stocks Decline; Pound Holds Gains
Asian stocks declined, following U.S. equities that fell for the fourth time in five sessions. The pound held gains after Prime Minister Theresa May announced early general election in the U.K.
The S&P 500 Index fell 0.3 percent led by Goldman Sachs Group Inc., after the investment banking and securities firm reported a bigger-than-expected drop in its bond trading revenue. IBM's quarterly sales fell short of analysts' estimates for the first time in a year.
Iron ore continued its slide while oil held losses around $52.5 per barrel.
SGX Nifty futures traded mostly unchanged, indicating a quiet start for the underlying NSE Nifty 50 Index, which is on a four-session losing streak.
Early Election In The U.K.
May said she had only "recently and reluctantly" come to the conclusion and that early general election was a necessity to ensure a smooth Brexit process. The snap polls scheduled for June 8, is expected to cement May's position, helping her gain greater control over the Brexit negotiations.
May's Conservative Party currently holds a 21-point lead ahead of the main opposition Labour Party, according to an ICM poll.
Also Read: May's Brexit Gamble Geared Towards Buying More Time To Negotiate
The pound, which had fallen in anticipation of May's speech, surged 2.2 percent on Tuesday. The FTSE 100 Index, on the other hand, dropped 2.46 percent.
H-1B Visa Reforms
U.S. President Donald Trump ordered a review of H-1B visa programme, saying that the current lottery system is "wrong".
“Instead, they should be given to the most skilled and highest paid” and should “never, ever be used to replace Americans,” Trump said.
Also Read: Trump Moves To Realign Visa Allotments Key To Tech Outsourcing
Crude Oil
Oil slipped to $52.36 after industry data showed the pace of decline in U.S. crude stockpiles slowed.
Crude supplies dropped by 8,40,000 barrels last week according to a report by the American Petroleum Institute. The government data due on Wednesday is expected to show a 1.4 million barrels cut.
Asian stocks declined following losses for US equities. Pound held gains triggered by snap UK polls.https://t.co/Pb4EXRsnW8 pic.twitter.com/JAnm6qmcdv
April 19, 2017Stable Start?
SGX Nifty, an early indicator of the Nifty's move, traded largely unchanged around 9,110 as of 7:15 a.m.
Investors will react to earnings from Tata Consultancy Services Ltd., which reported a 2.8 percent sequential drop in profit. Private lenders Yes Bank Ltd. and IndusInd Bank Ltd. are scheduled to report their earnings during market hours.
Also Read: Asian Stocks Drop After Weak U.S. Trading Session
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