10 things that will decide market trend today

Moneycontrol Bureau

The US markets accelerated their losses in the final hour trading to finish near session lows amid ongoing concerns over the global economy and as investors cautiously waited for further developments in the Euro zone. The Dow skid 1.6o% erasing a 126-point gain earlier in the session.

US economic data:

Durable goods orders slipped slightly in August amid weak demand for autos. Meanwhile, weekly mortgage applications gained last week.

Data to watch out for:

GDP growth for the second quarter is expected to rise slightly to 1.2%. Meanwhile, weekly jobless claims are expected to dip to 420000 versus 423000. Also watch out for pending home sales data which may decline 2% in August.

Europe:

European shares snapped a three-day winning streak as hopes for imminent political action to contain the region's debt crisis were capped by lack of details.

And according to a European Commission spokesman, the Troika involving the European Union, ECB and International Monetary Fund is scheduled to resume its mission to Athens today. Also, the Euro zone finance ministers will hold an additional meeting in October to further discuss Greek finances and aid to Athens.

Finland has voted in favour of a stronger European Financial Stability Facility (EFSF). This despite growing opposition from voters fed up of bailing out other EU nations. The German parliament will vote on the fate of the EFSF today.

Asian markets:

At 7: 41 am (IST), Asian markets were trading lower. China's Shanghai Composite was down 0.35% or 8.33 points at 2,383.73.

Japan's Nikkei shed 1.09% or 93.82 points at 8,521.83. Singapore's Straits Times fell 0.61% or 16.36 points at 2,684.81.

A signal 8 typhoon warning continues to be in force in Hong Kong. As a result the morning session at the Hong Kong stock exchange has been cancelled.

Currency market:

The dollar climbed versus its major counterparts as concern that Europe's debt crisis will hurt global growth boosts demand for haven currencies.

Commodities market:

Crude prices shed more than 3% heading for the biggest quarterly drop since 2008, amid ongoing Eurozone fears and as investors speculate that fuel demand will falter.

Copper collapsed to its lowest levels in 14 months as trepidation ahead of a German vote to beef up the Euro zone's rescue fund ignited another severe sell-off in commodities. It lost more than 7%, sustaining its second-largest drop since late 2008.

Gold fell more than 2% following a strong dollar. The metal has lost 9% in the past five sessions after a sharp margin increase and heavy fund selling. It is currently below the USD 1,600 per ounce level.

Local market:

Yesterday, the markets consolidated after Tuesday's pullback rally. The Nifty closed just below the 4,950 mark. The Sensex lost 80 points. Today is futures and options expiry.

Stock specific action:

JSW Steel is in focus. The company's MD Sajjan Jindal says he is confident about iron ore supply eventually. He said that JSW Steel plant is not going to shut down or move out of Karnataka for now.

Sesa Goa too on the radar after the environment ministry did not give clearance to Pirna mines in Goa. The company says that it's an old issue and mining at Pirna was never part of its business plans.

Motherson Sumi is also in the spotlight as its flagship company, Samvardhan Motherson Finance filed DRHP to raise Rs 1,750 crore.

Political news:

The UPA remains in damage control mode, trying to downplay the internal crisis sparked off by the controversial note on the 2G spectrum allocation.

Yesterday, Finance Minister Pranab Mukherjee did the balancing act when he wrote to the Prime Minister and Sonia Gandhi reportedly making it clear that ministerial note did not suggest any criminality or indictment of P Chidambaram during his stint as finance minister.

Vini Amesar.
viniamesar@network18online.com