Monday, 6 Dec 2021

Gold imports to climb in coming months: GJEPC

European Economics Preview: UK Inflation Data Due

Consumer and producer prices data from the UK is due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK consumer and producer prices for September. Consumer price inflation is seen unchanged at 3.2 percent in September. Economists forecast output prices to climb 6.8 percent annually after rising 5.9 percent in August.

In the meantime, producer price figures are due from Germany. Producer price inflation is expected to rise to 12.7 percent in September from 12 percent in August.

At 3.00 am ET, industrial production and producer prices are due from Poland. Economists forecast industrial production to grow 8 percent annually after rising 13.2 percent in August.

At 4.00 am ET, the European Central Bank releases current account data for August. The current account surplus totaled EUR 21.6 billion in July.

At 5.00 am ET, Eurostat is slated to issue euro area final consumer prices for September. According to flash estimate, inflation advanced to 3.4 percent in September from 3.0 percent in August.

Rupee rallies 47 paise to close at 74.88 against U.S. dollar

The rupee’s rise was mainly supported by softening crude oil prices in international markets.

The rupee surged by 47 paise to close at 74.88 (provisional) against the U.S. dollar on Wednesday on easing global crude oil prices.

A surging American currency in the overseas market and losses in the domestic equity markets put some pressure on the rupee, the forex dealers said.

At the interbank forex market, the local unit opened strong at 75.10 against the greenback and later gained strength to settle at 74.88, higher by 47 paise over its previous close of 75.35. The local unit moved in a range of 74.83 to 75.13 in the day trade.

The currency market was closed on Tuesday for the ‘Id-E-Milad’ holiday.

The forex traders said the rupee’s rise was mainly supported by softening crude oil prices in international markets.

Brent crude futures, the global oil benchmark, fell 0.83 per cent to USD 84.37 per barrel.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, surged 0.12 per cent to 93.84.

On the domestic equity market front, the BSE Sensex ended 456.09 points or 0.74 per cent lower at 61,259.96, while the broader NSE Nifty declined 152.15 points or 0.83 per cent to 18,266.60.

Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 505.79 crore, according to exchange data.

Northern Trust Q3 Results Rise, Top Estimates – Quick Facts

Northern Trust Corp. (NTRS) reported Wednesday that its third-quarter net income was $395.7 million, up 34 percent from last year’s $294.5 million. Earnings per share grew 37 percent to $1.80 from $1.32 last year.

On average, 16 analysts polled by Thomson Reuters expected earnings of $1.67 per share for the quarter. Analysts’ estimates typically exclude special items.

Revenue on an FTE basis grew 10 percent to $1.64 billion from last year’s $1.49 billion, as new business continued to contribute to growth in the trust, investment and other servicing fees. Analysts estimated revenues of $1.61 billion for the quarter.

Net interest income on FTE basis was $357.1 million, up 6 percent from last year. Net interest income increased on a year-over-year basis for the first time since the end of 2019, driven by growth in balance sheet in support of clients’ liquidity needs.

Total assets under management climbed 17 percent to $1.53 trillion from prior year’s $1.31 trillion.

Stora Enso Q3 Profit Surges, Backs FY21 Outlook – Quick Facts

Stora Enso (SEOAY.PK), a Finnish pulp and paper manufacturer, reported Wednesday that its third-quarter net profit soared 246.4 percent to 229 million euros from 86 million euros last year.

Earnings per share were 0.38 euro, up from 0.11 euro last year. Earnings per share excluding fair valuations were 0.37 euro, compared to 0.12 euro a year ago.

Operational EBIT increased to 410 million euros from 175million euros last year, driven by higher volumes and prices, especially in Biomaterials, Wood Products and Packaging Materials.

Sales increased 23.9 percent to 2.58 billion euros from 2.08 billion euros a year ago, due to higher prices and deliveries.

Stora Enso said it is investing 97 million euros to expand board production at the Skoghall site in Sweden.

Looking ahead, the company said the global economic activity remains at a healthy level with resilient demand for Stora Enso’s products in key segments.

The annual outlook for the full year 2021 remains as previously guided. Operational EBIT in 2021 is expected to be higher than the 2020 operational EBIT.

Rite Aid Continues To Gain

Rite Aid Corp. (RAD) shares are rising on Wednesday morning trade continuing an uptrend since yesterday. There were no corporate announcements from the company to impact the stock movement.

Currently, shares are at $14.77, up 8.36 percent from the previous close of $13.63 on a volume of 2,163,398. For the 52-week period, the shares have traded in a range of $8.86-$32.48 on average volume of 1,635,172.

Gold imports to climb in coming months: GJEPC

‘Festival season to spur demand’

India’s gold imports are expected to grow further in the coming months on account of peak demand due to the festive and wedding seasons, the Gem and Jewellery Export Promotion Council (GJEPC) projected on Wednesday.

Gold imports, which have a bearing on the current account deficit, zoomed to about $24 billion in the April-September period.

‘Sharp pickup’

Imports picked up in August, which recorded the second-highest gold imports of 118.08 tonnes. Chairman Colin Shah said the increase in imports during July, August, and September was due to the lifting of lockdowns, revival of domestic and export demand, and the start of the festive season that had resulted in a sharp rise in demand.

“We expect that imports of gold will further rise in the forthcoming months as peak festive/wedding season will further boost the demand for jewellery both at home and key international markets,” he added.

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