Need2know Brexit bargain Weakening Crude and Japanese Exports

A final all-clear to GST, fresh terror in London, weakness on crude oil prices and strong macro data from Japan and China set up a mixed field for financial markets this morning. 

Here is a wrapup of major macro triggers that may have a bearing on the financial markets. This report was compiled from various wire feeds. 

There is no more room for rumours on deferment. The goods and services tax will kick in from July 1. The GST Council, the apex decision body for the new tax, has stuck to the scheduled rollout. The panel has relaxed the time for filing initial invoice wise returns for the first two months; the hospitality industry has got a breather with five-star restaurants getting parity with other AC restaurants at 18 per cent GST and the Rs 5,000 room rent  .. 

Britain and the rest of the European Union go into the negotiations in Brussels later on Monday to decide the status of expats, the UK’s ‘divorce bill’ and the Northern Ireland border, besides other compensatory issues. BBC quoted Britain’s Brexit Secretary David Davis .. 

Good news on Japan’s exports front 

Japan's exports surged in May by the fastest pace in more than two years on bigger shipments of cars and steel, an encouraging sign that robust overseas demand will support economic growth, reported Reuters. The 14.9 per cent annual increase in exports in May was below the median estimate for a 16.1 percent annual increase but was nonetheless the biggest rise since January 2015. Shipments to the US rose 11.6 per cent in May from a year a .. 

A Reuters report said crude oil prices fell early on Monday, weighed down by high supplies despite an Opec-led initiative to cut production to tighten the market. Signs of faltering demand stoked weak sentiment, prompting price levels comparable to when the output cuts were first announced late last year. Brent crude futures were down 11 cents, or 0.23 per cent, at $47.26 per barrel, while WTI crude futures were down 11 cents, or 0.25 per cent, at  .. 

Dollar trades steady 

The greenback steadied against a basket of currencies early on Monday after slipping on soft US economic data, with investors awaiting comments by a top Federal Reserve official for clues on whether recent strength can be sustained, news agencies reported. The dollar index against a group of major currencies was down 0.05 per cent at 97.108 after climbing to a two-week high of 97.560 late the previous week following the Fed rate hike. 

The Department of Telecommunications (DoT) has asked the Finance Ministry to slash the non-tax revenue targeted from the telecom industry for this fiscal year by over a third. Plunging tariffs due to promotional offers and the limited ability to invest in capital expenditure are set to erode telecom companies' financials, which have already taken a hit in the past two quarters. The telecom department has asked that revenue estimates from the debt-l .. 

China home price data strong 

Average new home prices in China’s 70 major cities rose 0.7 percent in May from the previous month, in line with April, Reuters calculated from an official survey out on Monday. Compared with a year ago, new home prices rose 10.4 per cent in May, slowing slightly from an 10.7 per cent gain in April, Reuters calculated from National Bureau of Statistics (NBS) data. 

Sebi plays its part in NPA fight 

The Securities and Exchange Board of India (Sebi) is set to ease rules of acquisition to make it more attractive for investors to buy distressed companies from banks amid the renewed push to resolve banks' bad loan burden by the government and the Reserve Bank of India (RBI). The regulator has been granting exemptions to banks acquiring the stock of listed distressed companies. This includes relaxing the pricing formula for making an open  .. 

Markets regulator Sebi is likely to further tighten the P-Notes rules after having received feedback that such exemptions need to be extended to other prospective buyers as well. The Sebi board, which is set to meet on June 21, is likely to discuss the proposal as well as tighter rules on participatory notes (P-Notes). Sebi had last month proposed to ban P-Notes from being issued against derivatives for speculative purposes except for hedging .. 

An early Monday report said a van reportedly drove into a crowd of people in the Finsbury Park Area of London and that police reported a number of casualties and one person had been arrested. "Enquiries continue," the metropolitan police wrote in a notice on the incident. 

Source: Economictimes.indiatimes.com