US shutdown enters Day 3: 10 things to know before opening bell

1. US markets end lower as US govtshutdownenters Day 3

US stocks dropped on Thursday as investors worried that a budget stalemate in Congress would become entangled with much more critical legislation to raise the federal borrowing limit. At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.90%, the S&P 500 index also fell 0.90%, while the Nasdaq Composite index fell 1.07%.

2.Dollar languishes near eight-month low

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The dollar languished near an eight-month low on Friday as the US budget standoff dragged on, heightening fears it could become embroiled in the likely struggle later this month to raise the US borrowing limit.The dollar was also hurt by slower growth in the U.S. services sector in September.The dollar stood at 97.38 yen, ahead of the outcome of a two-day Bank of Japan policy meeting, after hitting a five-week low of 96.93 on Thursday.

3.Asian markets steady

Japan’s Nikkei share average shed 0.7 per cent to a near four-week low andHong Kong’s Hang Seng index was trading 0.8 per cent lower at 23,017.25after the US S&P 500 overnight suffered its ninth loss in 11 sessions, while oil prices remained on the back foot. Bank of Japan is expected to maintain its massive stimulus and reiterate its upbeat view that the economy is strong enough to weather a sales tax increase next year without additional monetary policy measures.

4.Gold is set for its worstweekly performance in three weeks

Spot gold was holding steady at $1,316.75 an ounce by 0024 GMT. But declines have been kept incheck by a partial U.S. government shutdown that threatens tohurt economic growth, increasing bullion’s safe-haven appeal.The metal’s 1.5 percent loss for the week so far was largelydue to a single massive Comex sell order on Tuesday that sentprices below $1,300 an ounce, but it quickly recovered as thebudget impasse in Washington dragged on.

5. US oil prices inch lower

Brent crude slipped 0.2 per cent to around $108.8 a barrel, adding to a 0.2 percent decline overnight, as the slower service sector growth in September compounded worries about raw materials demand due to the US budget crisis and government shutdown.

6. Nifty may open lower today

Nifty India stock futures in Singapore were trading 36 points lower at 5935, indicating a lower opening on the domestic market. On Thursday, Nifty continued with its upward march and closed above 5,900 levels with gains of 130 points on the back of sustained buying across the board by foreign institutional investors on Thursday.

Stocks in news

7. Jet Airways after the Cabinet Committee on Economic Affairs (CCEA) cleared the Rs 2,057 crore deal today. The approval from Competition Commission of India is also expected soon. The Cabinet clearance comes after the deal has been scrutinised by the stock market regulator Sebi and Foreign Investment Promotion Board. Earlier, Sebi approved the Jet Airways’ proposed sale of 24 percent stake to Abu Dhabi-based Etihad Airways.

8.Financial Technologies after the FMC barred the National Spot Exchange and group firms from auctions of commodities held by the bourse after a complaint that firms related to the former managing director took part in the bidding process. A five-member panel will now oversee the auctions at NSEL, the Forward Markets Commission (FMC) said in a directive to the crisis-hit exchange. The NSEL is selling commodities to clear Rs 5,600 crore of dues to 13,000 investors.

Economy news

9. Cheaper loans for consumer goods, two-wheelers

Finance Ministry has decided to infuse more funds in public sector banks (PSBs), so that they can offer loans at cheaper rates. The government has said state-run banks will soon provide cheaper loans to fund purchases of TVs, refrigerators, motorcycles and scooters. More goodies could be covered by the scheme later.

10. Fitch warns India of rating implications

Fitch Ratings has warned India than any slippage on the policy front would have negative implications for its rating, currently at lowest investment grade. It also cautioned India that there was much capital still left which could flow out of the country.

With inputs from Reuters