Key benchmark indices edged lower on weak global cues. The barometer index, the S&P BSE Sensex, settled at three-week low. The 50-unit CNX Nifty settled at its lowest level in almost six weeks. The market breadth, indicating the overall health of the market was negative. The Sensex shed 184.52 points or 0.82%, off 208.92 points from the day's high and up 37.64 points from the day's low.
Indian stocks snapped two-day winning streak today, 7 May 2014. The Sensex had gained 104.53 points or 0.46% in two trading sessions to 22,508.42 on Tuesday, 6 May 2014, from a recent low of 22,403.89 on 2 May 2014. The Sensex has lost 93.90 points or 0.41% in this month so far (till 7 May 2014). The Sensex has gained 1,153.22 points or 5.44% in calendar year 2014 so far (till 7 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,875.19 points or 27.94%. From a record high of 22,939.31 on 25 April 2014, the Sensex has fallen 615.41 points or 2.68%.
Coming back to today's trade, Infosys dropped after a foreign brokerage downgraded the stock to "sell" from "buy" and cut its target price, saying a turnaround at the IT outsourcer could take longer than expected. Metal stocks fell after the latest data showed services index in China from HSBC Holdings Plc and Markit Economics dropped in April from March. Lupin edged lower on profit taking after announcing strong Q4 results.
The market edged lower amid initial volatility. Key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The Sensex extended losses and hit fresh intraday low in mid-morning trade. The Sensex further extended losses and hit fresh intraday low in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in late trade. The 50-unit CNX Nifty hit its lowest level in almost six weeks.
The S&P BSE Sensex lost 184.52 points or 0.82% to settle at 22,323.90, its lowest closing level since 16 April 2014. The index slumped 222.16 points at the day's low of 22,286.26 in late trade. The index rose 24.40 points at the day's high of 22,532.82 in early trade.
The CNX Nifty lost 62.75 points or 0.93% to settle at 6,652.55, its lowest closing level since 27 March 2014. The index hit a low of 6,642.90 in intraday trade. The index hit a high of 6,718.75 in intraday trade.
Also Read
The BSE Mid-Cap index shed 10.61 points or 0.14% to settle at 7,360.08. The BSE Small-Cap index shed 5.84 points or 0.08% to settle at 7,526.99. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2773 crore, higher than Rs 1958.07 crore on Tuesday, 6 May 2014.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,493 shares fell and 1,234 shares rose. A total of 137 shares were unchanged.
The S&P BSE Realty index (down 1.11%), the S&P BSE Teck index (down 2.23%) and the S&P BSE IT index (down 2.59%) underperformed the Sensex.
The S&P BSE Consumer Durables index (up 0.77%), the S&P BSE Power index (up 0.2%), the S&P BSE Bankex (down 0.1%), the S&P BSE Capital Goods index (down 0.17%), the S&P BSE Healthcare index (down 0.21%), the S&P BSE Oil & Gas index (down 0.21%), the S&P BSE FMCG index (down 0.33%), the S&P BSE Auto index (down 0.7%) and the S&P BSE Metal index (down 0.71%) outperformed the Sensex.
Among the 30-share Sensex pack, 26 stocks declined and rest of them rose. Cipla (down 2.16%), GAIL (India) (down 1.98%) and Bajaj Auto (down 1.6%) edged lower from the Sensex pack.
Index heavyweight and cigarette maker ITC shed 0.7% to Rs 345.50.
Index heavyweight Reliance Industries (RIL) slipped 0.57% to Rs 957.80. The stock hit high of Rs 971 and low of Rs 957.
Shares of PSU OMCs edged higher on renewed buying. Indian Oil Corporation (IOCL) rose 1.18%.
HPCL gained 1.63% at Rs 347. The stock hit 52-week high of Rs 351.80 in intraday trade.
BPCL rose 0.83%. The company after market hours on Tuesday, 6 May 2014, announced that Bharat PetroResources (BRPL), a wholly owned subsidiary of BPCL, advises that Anadarko Mozambique Area 1 Limitada, the operator of the offshore Area 1 block in the Rovuma Basin, Mozambique, announced on 5 May 2014, in its Q1 March 2014 results, that successful appraisal drilling activities in the Orca field increased the total estimated recoverable resources in Offshore Area 1 to a range of 50 to 70-plus trillion cubic feet of natural gas. In addition, the consortium continued to advance the Mozambique LNG project by adding incremental non-bidding LNG off-take agreements.
The consortium members in the block are Anadarko Mozambique Area 1 Limitada (26.5% PI), BRPL Ventures Mozambique B.V (10% PI), Beas Rovuma Energy Mozambique Limitada (10% PI), ONGC Videsh (10% PI), Cove Energy Mozambique Rovuma Offshore (8.5%PI) and Mitsui B&P Mozambique Area 1 (20% PI). The balance 15% PI is with Empressa Nacional de Hidrocarbonetos E.P (ENH) the national oil company of Mozambique, who are carried through the exploration phase.
Shares of ONGC fell 0.28% to Rs 336 in volatile trade. The stock hit high of Rs 342.10 and low of Rs 334.10.
Metal and mining stocks fell after latest data showed services index in China from HSBC Holdings Plc and Markit Economics dropped in April from March. China is the World's largest consumer of copper and aluminum. Sesa Sterlite (down 1.17%), JSW Steel (down 1.8%), Hindalco Industries (down 2.2%), Hindustan Zinc (down 1.01%), National Aluminum Company (down 2.27%), Tata Steel (down 0.26%) and Hindustan Copper (down 2.24%) declined. NMDC (up 0.07%) and Steel Authority of India (Sail) (up 0.15%) rose.
IT stocks edged lower. TCS (down 1.75%), Wipro (down 1.72%) and Tech Mahindra (down 3.45%) declined.
Infosys edged lower after a foreign brokerage downgraded the stock to "sell" from "buy" and cut its target price to Rs 2,750 from Rs 4,050, saying a turnaround at the IT outsourcer could take longer than expected. The stock shed 3.15% to Rs 3,064.45. The brokerage has cited Infosys' high staff attrition and its focus on boosting margins at the expense of stabilising revenue and market share as other risk factors.
HCL Technologies edged lower amid high intraday volatility. The stock lost 4.4% to Rs 1,321.50. The scrip hit high of Rs 1,403.25 and low of Rs 1,315. HCL Technologies and DNB Bank ASA, Norway's largest bank and one of the world's leading maritime shipping banks, today, 7 May 2014, announced a $400-million strategic engagement. HCL will manage the IT infrastructure services and application operations for all DNB businesses across Norway and its key international locations.
As part of the deal HCL will migrate and transform DNB systems and infrastructure from its existing IT partner to create two new data centers in Norway. The key focus will be driving a world-class user experience to the bank's 2.5 million retail banking customers and end-users across all DNB's products, including retail and online banking, cards, insurance, capital markets, payments and finance, HCL Technologies said in a statement.
Most bank stocks edged lower after the Reserve Bank of India barred banks from levying foreclosure charges on individual borrowers for all floating rate loans with immediate effect. Among private sector banks, ICICI Bank (down 0.2%), HDFC Bank (down 0.58%), Yes Bank (down 2.35%), Federal Bank (down 1.35%), and Axis Bank (down 0.52%), declined. Kotak Mahindra Bank rose 0.47%.
Among PSU bank stocks, Canara Bank (down 1.41%), Union Bank of India (down 4.07%), Bank of India (down 1.15%), and Punjab National Bank (down 0.76%) declined. State Bank of India (SBI) (up 1.22%) and Bank of Baroda (up 0.1%) gained.
The Reserve Bank of India (RBI) today, 7 May 2014, said that commercial banks will not be permitted to charge foreclosure charges/pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect. In a separate notification, the RBI also said that henceforth commercial banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative savings bank account.
IndusInd Bank rose 0.2%. The bank said during market hours today, 7 May 2014, that the bank and Rapid Metro Gurgaon (RMGL) inaugurated IndusInd Bank Cybercity Rapid Metro Station today, 7 May 2014. This is the first and the only metro station in the country which has been named and branded by a bank, thus making it an excellent example of transit mode of advertising in India opted by IndusInd Bank, the private sector bank said in a statement. The bank and RMGL have inked a 5 year contract for naming rights of the metro station.
IndusInd Bank said it has a strong retail focus and with the presence at Rapid Metro, the bank aims to reach out to more customers in Gurgaon and Delhi NCR.
Allahabad Bank slumped 8.69% to Rs 95.05 on profit booking after the company announced Q4 March 2014 results. The bank announced the result during trading hours today, 7 May 2014. Shares of Allahabad Bank surged 13.71% in the preceding 11 trading sessions to Rs 104.10 on 6 May 2014, from a recent low of Rs 91.55 on 16 April 2014.
Allahabad Bank's net profit rose 25.05% to Rs 157.75 crore on 9.65% increase in total income to Rs 5237.68 crore in Q4 March 2014 over Q4 March 2013.
Net profit fell 1.11% to Rs 1172.02 crore on 10.57% increase in total income to Rs 20912.43 crore in the year ended March 2014 over the year ended March 2013.
Allahabad Bank's ratio of net non-performing assets to net advances stood at 4.15% as on 31 March 2014, compared with 4.19% as on 31 December 2013 and 3.19% as on 31 March 2013.
The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 5.73% as on 31 March 2014, compared with 5.47% as on 31 December 2013 and 3.92% as on 31 March 2013.
Provisions and contingencies rose 2.70% to Rs 639.31 crore in Q4 March 2014 over Q4 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 9.96% as on 31 March 2014, compared with 10.46% as on 31 December 2013.
In accordance with Reserve Bank of India Notification dated 20 December 2013, Allahabad Bank has provided Deferred Tax Liability (DTL) of Rs 88.71 crore on account of Special Reserve created under section 36(1) (vm) of the income Tax Act, 1961 for the financial year 2013-14 (Rs 24.98 Crore for the quarter ended 31 March 2014) through Profit & Loss Account. Further, in terms of aforesaid notification Deferred Tax Liability (DTL) of Rs 301.71 crore for the, Special Reserve created up to 31 March 2013, has been made directly from revenue reserve.
Minimum Alternate Tax (MAT) Credit has been recognized as an asset to the extent of Rs 192.13 crore as MAT Credit Entitlement under 115JAA of the income Tax Act, 1961, the bank said in a statement.
Syndicate Bank lost 7.16% after net profit declined 30.9% to Rs 409.30 crore on 12.06% growth in total income to Rs 5357.40 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 7 May 2014.
Syndicate Bank attributed decline in net profit in Q4 March 2014 to non availability of MAT credit of Rs 114 crore accounted in Q4 March 2013 and increase in NPA provisions.
Domestic current and savings accounts (CASA) deposits rose 7.67% to Rs 55911 crore as on 31 March 2014, from Rs 51926 crore as on 31 March 2013. Domestic CASA deposits stood at Rs 29.9% of total domestic deposits as at 31 March 2014. Bank has taken various steps, campaigns to increase CASA performance, Syndicate Bank said in a statement.
Gross NPA ratio stood at 2.62% as on 31 March 2014 as against 1.99% as on 31 March 2013. Despite the stress in the economy and more NPAs in the industry, Syndicate Bank is able to maintain the gross NPA level below 3%, it said. However, compared to preceding quarter, it has come down from 2.8% and this is one of the lowest, the bank said in a statement.
Net NPA ratio stood at 1.56% as on 31 March 2014 as against 0.76% as on 31 March 2013. However, compared to preceding quarter, it has come down from 1.66% and this is one of the lowest, Syndicate Bank said in a statement.
Provision coverage ratio stood at 70.02% in Q4 March 2014 as against 83.41% in Q4 March 2013. However, this is one of the best in the industry, Syndicate Bank said in a statement.
Global net interest margin (NIM) stood at 2.79% in FY 2014 as against 3.19% in FY 2013. This is on account of the stress in the economy and more NPAs in the industry as well as in Syndicate Bank. Domestic NIM stood at 3.21% in FY 2014 as compared to 3.52% in FY 2013.
Syndicate Bank's net profit declined 14.61% to Rs 1711.46 crore on 9.01% growth in total income to Rs 19945.21 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Shares of housing finance major HDFC dropped 2.75%.
Telecom stocks declined. Reliance Communications (down 1.23%), Bharti Airtel (down 1.35%) and Idea Cellular (down 0.31%) fell.
Titan Company rose 0.57% after net profit rose 11.61% to Rs 206.44 crore on 7.04% increase in total income to Rs 2828.88 crore in Q4 March 2014 over Q4 March 2013. The company announced the result at the fag end of the trading session on Tuesday, 6 May 2014. Titan Company's net profit rose 1.32% to Rs 734.94 crore on 8.05% increase in total income to Rs 11047.61 crore in the year ended March 2014 over the year ended March 2013.
Titan Company said this performance came in the backdrop of a challenging economic environment which was met by the talent and commitment of employees and business associates that helped Titan Company register this growth in a difficult year. The strength of company's brands contributed to sales growth across all retail formats of watches, jewellery and eyewear.
The watches business of the company recorded an income of Rs 1790.80 crore, a growth of 6.9%. This was achieved through meticulous planning and execution of key initiatives. The income from jewellery segment grew by 6.5%, crossing the Rs 8500 crore mark to Rs 8632.03 crore. The income from other segments comprising of precision engineering, a B2B business, the eyewear business and accessories grew by 20.7% to Rs 499.79 crore.
The year witnessed aggressive expansion of its retail network with a net addition of 125 stores by watches, jewellery and eyewear businesses. As on 31 March 2014, the company had 1078 stores, with over 1.5 million square feet of retail space delivering a retail turnover in excess of Rs 10900 crore.
Commenting on the financial performance, Mr. Bhaskar Bhat, Managing Director, Titan Company said: "The year 2013-14 was a challenging year given the economic environment that was subdued. The year also witnessed other adverse factors like the regulatory changes that impacted our jewellery business. The company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans. Given the expectations of our stakeholders and aspirations of our employees, we move confidently into the new financial year with aggressive plans."
Lupin fell 1.19% to Rs 990.20 after announcing Q4 results. The stock was volatile. The stock hit a record high of Rs 1,022 in intraday trade. The stock hit an intraday low of Rs 985.65. The company's consolidated net profit jumped 35.5% to Rs 553 crore on 20.3% increase in net sales to Rs 3051.50 crore in Q4 March 2014 over Q4 March 2013. Lupin's operating profit jumped 33.2% to Rs 876.90 crore in Q4 March 2014 over Q4 March 2013. The operating profit margin (OPM) edged up to 28.7% in Q4 March 2014, from 26% in Q4 March 2013. The result hit the market during trading hours today, 7 May 2014.
Revenue expenditure on R&D for Q4 March 2014 amounted to Rs 245.60 crore or 8% of net sales, as against Rs 199.90 crore or 7.9% to net sales in Q4 March 2013. Revenue expenditure on R&D amounted to Rs 929.40 crore or 8.4% of net sales in the year ended 31 March 2014 (FY 2014), as against Rs 709.80 crore or 7.5% of net sales in the year ended 31 March 2013 (FY 2013).
Operating working capital increased to Rs. 2815.80 crore as on 31 March 2014, as against Rs 2769.50 crore as on 31 December, 2013. The working capital number of days stood at 92 days as on 31 March 2014, as against 94 days on 31 December 2013. Lupin remains a debt-free company.
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin said: "We have had another remarkable year fuelled by strong growth in key markets like the US, Europe, South Africa and in our API business. Importantly, we were able to improve operational efficiencies substantially. The year also marked our entry into high growth markets like Mexico and acquiring technology research capabilities that would help us address niche segments like Complex Injectables and Inhalation".
Realty stocks edged lower. D B Realty (down 3.68%), Housing Development & Infrastructure (HDIL) (down 2.98%), DLF (down 0.07%), Indiabulls Real Estate (down 1.9%), Godrej Properties (down 2.62%), Parsvnath Developers (down 0.21%) and Unitech (down 2.85%) dropped.
Voltamp Transformers lost 2.84% after net profit fell 36.2% to Rs 9.52 crore on 17.4% decline in net sales to Rs 144.49 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 6 May 2014.
Voltamp Transformers' net profit fell 20.1% to Rs 26.29 crore on 13.7% decline in net sales to Rs 444.78 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Voltamp Transformers' board of directors at its meeting held on Tuesday, 6 May 2014, recommended dividend of Rs 10 per share for FY 2014.
Ingersoll-Rand (India) rose 1.17% after net profit rose 16.99% to Rs 21.41 crore on 0.47% decline in net total income from operations to Rs 133.05 crore in Q4 March 2014 over Q4 March 2013. The company announced results during trading hours today, 7 May 2014.
Clariant Chemicals (India) fell 3.5% after net profit fell 38.9% to Rs 15.13 crore on 1.2% decline in net sales to Rs 274.21 crore in Q1 March 2014 over Q1 March 2013. The Q1 result was announced after market hours on Tuesday, 6 May 2014.
Everonn Education jumped 3.23% after the company said its board will meet on 15 May 2014, inter alia to consider offer of shares through rights issue. The announcement was made before market hours today, 7 May 2014. Everonn Education reported a net loss of Rs 21.64 crore in Q3 December 2013, lower than net loss of Rs 129.27 crore in Q3 December 2012. Net sales declined 28.2% to Rs 11.22 crore in Q3 December 2013 over Q3 December 2012.
Hikal lost 3.11% after net profit declined 66.8% to Rs 3.07 crore on 20% growth in net sales to Rs 227.54 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 6 May 2014.
Hikal's net profit jumped 151.2% to Rs 64.08 crore on 25.6% growth in net sales to Rs 829.21 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, Hikal's net profit jumped 153.1% to Rs 63.90 crore on 25.6% growth in net sales to Rs 829.21 crore in FY 2014 over FY 2013.
Hikal's board of directors at its meeting held on Tuesday, 6 May 2014, recommended dividend of Rs 4.50 per share for FY 2014, subject to the approval of shareholders in the ensuing Annual General Meeting.
Kennametal India jumped 6.83% after the company reported net profit of Rs 5.28 crore in Q3 March 2014 as against net loss of Rs 3.10 crore in Q3 March 2013. The company announced the result after market hours on Tuesday, 6 May 2014. Kennametal India's net sales rose 17.06% to Rs 134.51 crore in Q3 March 2014 over Q3 March 2013.
Gujarat Pipavav Port surged 7.49% after net profit jumped 72.51% to Rs 61.02 crore on 25.49% growth in total income from operations to Rs 156.20 crore in Q1 March 2014 over Q1 March 2013. The Q1 result was announced after market hours on Tuesday, 6 May 2014. Exceptional item in Q1 March 2014 represents payment made by the company in January 2014 amounting to Rs 10.22 crore towards mobilization and other services in relation to the dredging activity undertaken as part of the port expansion project. Consequent to the revision in the said port expansion plan approved by the Board of Directors of the company in its meeting dated 17 April 2014, this amount is fully written off, Gujarat Pipavav Port said.
IRB Infrastructure Developers jumped 7.03% after the company said it received a letter of award from National Highways Authority of India for a road project in Haryana. The company made the announcement during trading hours today, 7 May 2014. IRB Infrastructure Developers said it has emerged as a selected bidder and received letter of award from National Highways Authority of India (NHAI) for the project of four laning of Kaithal - Rajasthan border section of national highway-152/65 from km 33.250 to km 241.580 (design length 166 km) in Haryana to be executed as Build-operate-transfer (BOT) (Toll) on Design, Build, Finance, Operate, Transfer (DBFOT) pattern under NHDP Phase - IV.
The estimated project cost of the company is approximately Rs 2300 crore. The concession period for the same is 27 years. Construction period is 910 days. The company has sought Rs 234 crore viability gap funding from NHAI.
With this project, IRB Infrastructure Developers expands its base in 7th state viz. Haryana.
Kajaria Ceramics surged 3.59% after consolidated net profit jumped 36.85% to Rs 42.11 crore on 19.89% growth in total income from operations to Rs 524.27 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 7 May 2014.
Kajaria Ceramics' consolidated net profit rose 18.85% to Rs 124.22 crore on 16.21% growth in total income from operations to Rs 1840.04 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Kajaria Ceramics said it plans to add 50% of its existing capacity (as on 31 March 2014) in the next 24 months.
Kajaria Ceramics' board of directors at its meeting held today, 7 May 2014, approved to increase stake in Jaxx Vitrified (Subsidiary) from 51% to 61%. The board approved to acquire 51% stake in Taurus Tiles, Morbi (Gujarat) by subscribing to the equity shares of the company. Taurus Tiles is in the process of setting up a plant having 5 MSM annual capacity of Polished Vitrified Tiles. The board approved to put up green field facility in Rajasthan for production of 5 MSM annual capacity of vitrified Tiles. The board further approved to acquire 100% stake in Kajaria Bathware which plans to put up a faucet plant having capacity of 1.5 Million pieces in Gailpur, Rajasthan. The board also approved to sell 64% stake in Kajaria Sanitaryware, Morbi to Kajaria Bathware.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the ongoing Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Investors are hoping that a stable government which will complete its full term of five years in office comes to power after the elections. A party or a combination will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
Investors are betting that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude next week. Various opinion polls have forecast that the NDA with Narendra Modi as its prime ministerial candidate is leading the race to Parliament. Most opinion polls have forecast that the NDA will be unable to form the government on its own and that it will have to rely on support from smaller regional parties to form the government. For the first time in mid-April, an opinion poll for a television news channel showed the NDA winning a narrow majority of 275 seats.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections.
Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
US Secretary of State John Kerry said yesterday, 6 May 2014, that plans by pro-Russian separatists in Ukraine's Donetsk region to hold a May 11 referendum on secession were illegal and contrived. He said his country is ready to impose sanctions should Russia fail to withdraw its support for separatists.
Ukraine's acting Interior Minister Arsen Avakov said this week that four soldiers and about 30 pro-Russian separatists were killed in a May 5 clash. His government began an assault against pro-Russian rebels in Donetsk on April 13, after gunmen seized buildings and took several dozen captives.
German factory orders unexpectedly fell in March, signaling that growth in Europe's largest economy remains uneven. Orders, adjusted for seasonal swings and inflation, fell 2.8% from February, when they increased a revised 0.9%, the Federal Statistics Office in Wiesbaden said today, 7 May 2014.
A monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled tomorrow, 8 May 2014.
The European Central Bank (ECB) will hold monetary policy meeting tomorrow, 8 May 2014, in Brussels, Belgium.
Asian shares fell on Wednesday, 7 May 2014, amid mounting concern China's economy is slowing after the result of a survey released by HSBC Holdings Plc and Markit Economics showed that services index for China declined in April from March. Key benchmark indices in Japan, Hong Kong, China, Singapore, South Korea and Taiwan were down 0.22% to 2.93%. Indonesia's Jakarta Composite rose 0.57%.
A services index in China from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month.
Most members of the Bank of Japan agreed to keep easing monetary policy until inflation stabilizes at 2%, according to minutes of the April 7-8 policy meeting released today, 7 May 2014.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Wednesday, 7 May 2014. US stocks dropped broadly on Tuesday, 6 May 2014, closing at session lows, with AIG pulling financial shares lower after disappointing earnings and as a slide in Twitter took down other names in the technology and internet space.
The US trade deficit narrowed in March as exports grew by the most in nine months, the Commerce Department reported yesterday, 6 May 2014.
US Federal Reserve Chairwoman Janet Yellen is scheduled to testify before the congressional Joint Economic Committee today, 7 May 2014, and the Senate Budget Committee tomorrow, 8 May 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
The global economy will strengthen over the coming two years, but urgent action is still required to further reduce unemployment and address other legacies from the crisis, according to the OECD's latest Economic Outlook.
"Advanced economies are gaining momentum and driving the pick-up in global growth, while once-stalled cylinders of the economic engine, like investment and trade, are starting to fire again," OECD Secretary-General Angel Gurr said while launching the Outlook during the Organisation's annual Ministerial Council Meeting and Forum in Paris.
GDP growth across the 34-member OECD is projected to accelerate to a 2.2% rate in 2014 and 2.8% in 2015, according to the Outlook. The world economy will grow at a 3.4% rate in 2014 and 3.9% in 2015.
Among the major advanced economies, recovery is best established in the United States, which is projected to grow by 2.6% in 2014 and 3.5% in 2015. The euro area will see a return of positive growth after three years of contraction: 1.2% in 2014 and 1.7% in 2015. In Japan, growth will be dented by the launch of much-needed fiscal consolidation measures, and is expected to hover at 1.2% in 2014 and 2015.
The BRICS (Brazil, China, India, Indonesia, Russia and South Africa) are projected to see GDP growth of 5.3% this year on average and 5.7% in 2015. China will again have the fastest growth among these countries, with rates just below 7.5% in 2014 and 2015.
Powered by Capital Market - Live News