Hong Kong: Markets across Asia can’t seem to make up their minds this morning, and are yo-yo-ing listlessly in early morning trades.
As at 7.30 am IST, Nifty futures are trading absolutely flat. Elsewhere across the Asia-Pacific region too, indices are crawling along, about flat, but with some volatility, on thin volumes. The absence of cues from Wall Street overnight, where too the three leading indices finished the day with nothing substantial to show isn’t helping investor sentiment either.
Downbeat housing data from the US, and weak corporate earnings, too weighed down the indices.
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Over in Europe, an ECB council member’s comments on the merits of granting the European Stability Mechanism a banking licence in order to enhance its firepower was well-received by the markets. The euro perked up a bit, but the impression that Europe is just sleepwalking through a crisis of monstrous proportions is widely shared.
Back home, all eyes will turn to the RBI in the expectation of a rate cut. Analysts reckon that the growth drivers are so weak that a rate cut is hard to pass up, but if there’s one thing that can be said with certainty of the RBI, it is that you can never be certain about its moves.
But otherwise, it looks like a pretty lacklustre start to the trading day.