10 things that you should know before Oct series starts

Moneycontrol Bureau:

The US markets erased a strong rally following a broad selling pressure but still finished off their worst levels in thin, choppy trading as the Dow and S&P rebounded from afternoon lows.

US economic data:

The US economy grew at an annual rate of 1.3% in the second quarter. Meanwhile, the weekly jobless claims fell more than expected, down 37,000 to 391,000. However, pending home sales fell 1.2% to 88.6 in August to their lowest level in four months.

Data to watch out for:

Consumer sentiment is expected to remain unchanged at 57.8. And also watch out for personal income and outlays data. Consensus estimates indicate a dip in personal income at 0.1 % versus 0.3 %, while consumer spending is expected to come in at 0.2 % versus 0.8 %.

Other news in US:

Mcgraw-Hill Companies could be in advanced talks to merge its S&P indices business with CME Group's Dow Jones indices. The deal would bring together some of the oldest and most widely followed US indices including the Dow Jones Industrial Average and the S&P 500.

Europe:

The lower house of the German parliament - Bundestag has approved an enhanced rescue fund and backed more powers for the European Financial Stability Facility.

Markets ended higher after the German parliament approved new powers to the european financial stability fund, the Euro zone's rescue fund.

Greece's Papandreou will hold debt talks in PARIS today. And Eurozone finance ministers will meet on Monday to discuss about how to leverage the EFSF bail out fund to give it more powers without having to increase national guarantees.

Asian markets:

At 7: 42 am (IST), Asian markets were trading firm. China's Shanghai Composite was up 0.37% or 8.73 points at 2,374.07.

Taiwan's Taiwan Weighted rose 0.57% or 41.03 points at 7,223.64. Japan's Nikkei was up 0.38% or 33.25 points at 8,734.48.

Japan's industrial output rose 0.8% in August as companies made up for production delays caused by the twin disaster in March. The rise, however, was smaller than a median market forecast of 1.5%

Meanwhile, South Korea posted a slower than expected rise in industrial output. Output rose 4.8%, as compared to the 7% median forecast by economists.

Currency market:

The euro trimmed its advance versus the dollar after Germany's passage of an expansion to the region's bailout fund failed to allay investor concern about the sovereign debt crisis.

Commodities market:

Crude gained following better than expected US economic data and the German approval for the bailout bill. Brent is currently trading around USD 104 per barrel.

Gold maintained its gains around USD 1,630 per ounce levels on safe haven buying. Silver prices too advance.

Local market:

It was smooth expiry session of trade for the markets. The uncertainty from Europe did not deter the markets. The Nifty climbed 69 points to close at 5,015. The Sensex too shut in green to close 252 points higher at 16,698.

Stock specific action:

Some trouble is brewing for the Reliance ADA Group. The CBI has sought to turn the three jailed Reliance ADA executive as approvers in the case. The CBI has also told the apex court that the role of Anil Ambani and other employees in the sale of Swan to Delphi is also being investigated.

Lanco Infra has stated that they would vigorously defend Perdaman's allegations. Perdaman had alleged that Lanco Infra violated australia coal pact.

Unitech shareholders reject the proposed dividend for FY11. Just to remind you the Unitech board had proposed Rs 0.10 per share FY11 dividend.

There's good news for Bhansali Engineering. The company law board refused to grant any interim relief for minority shareholders, who had alleged financial irregularities.

Vini Amesar.
vini.amesar@network18online.com.