{"id":14290,"date":"2020-08-12T06:26:28","date_gmt":"2020-08-12T06:26:28","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=14290"},"modified":"2020-08-12T06:26:28","modified_gmt":"2020-08-12T06:26:28","slug":"business-live-stocks-drop-gold-falls-below-1900-level","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=14290","title":{"rendered":"Business Live: Stocks drop; gold falls below $1,900 level"},"content":{"rendered":"

<\/p>\n

\n

The benchmark stock indices have opened the day with losses after clocking gains in the last two days.<\/p>\n

Gold is experiencing a sharp correction, falling below the $1,900\/oz level. The yellow metal earlier traded well above the $2,000\/oz level.<\/p>\n

Join us as we follow the top business news through the day.<\/p>\n

11:30 AM<\/p>\n

Gold falls below $1,900 level as U.S. dollar, yields rise<\/h2>\n

The gold rally is witnessing some serious challenge from the bears at the moment.<\/p>\n

Reuters<\/em> reports: “Gold fell below the $1,900 per ounce level on Wednesday as a resurgent dollar prompted investors to reassess their positions after a record-breaking price rally.<\/p>\n

Spot gold declined as much as 2% to a near three-week low of $1,872.19, resuming its free fall after a brief hiatus in early trade. It was down 1.1% to $1,889.59 by 0330 GMT, extending losses after a 6% plunge on Tuesday.<\/p>\n

U.S. gold futures slid 2.4% to $1,900. Silver too joined the slide, falling 2.8% to $24.11 per ounce after a 15% slump in the previous session.<\/p>\n

\u201cIt looks like some of the euphoria is coming out of the gold market,\u201d with a test of support around $1,800 now looking possible, IG Markets analyst Kyle Rodda said. \u201cA lot hinges on U.S. yields and the factors driving them at the moment. Also, dollar’s strength will be something very important to watch over the next few days and weeks.\u201d<\/p>\n

A jump in U.S. Treasury yields helped the dollar extend its winning streak, making gold more expensive for those holding other currencies. Higher yields also increase the opportunity cost of holding non-yielding gold. Gold suffered its biggest one-day drop in more than seven years on Tuesday as equities surged and the dollar firmed. However, growing uncertainty about a U.S. stimulus deal weighed on Asian stocks on Wednesday. <\/p>\n

Bullion’s gains for the year now stood at about 25%, as investors buy the metal as a hedge against a coronavirus-driven slowdown and fears of currency debasement as central banks flood the economy with money to ease the blow.<\/p>\n

With central bank policies likely to remain \u201cloose for the foreseeable future,\u201d gold could move back towards $2,000, said ING analyst Warren Patterson. Platinum lost 1% to $920.86 and palladium eased 0.4% to $2,082.90.”<\/p>\n

\n
\n
\n

#Gold<\/a> collapseds below $1,900 an ounce extending the precious metal\u2019s slump into a second day, to head for its biggest two-day loss in more than seven years as investors step back from one of the hottest trades of 2020 as Treasury yields rise. https:\/\/t.co\/ORjPA5me7O<\/a> pic.twitter.com\/SPbcOwCIwC<\/a><\/p>\n

\u2014 Holger Zschaepitz (@Schuldensuehner) August 12, 2020<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n

\u00a0<\/p>\n

11:00 AM<\/p>\n

Debt revamp to prolong banks\u2019 asset quality uncertainty: Fitch<\/h2>\n

A one-time debt restructuring allowed by India\u2019s central bank to help lenders and borrowers amid the COVID-19 pandemic will prolong uncertainty about the banking sector\u2019s asset quality, Fitch Ratings said on Tuesday.<\/p>\n

The central bank said last week it will allow restructuring of corporate and personal loans to ease debt strains on companies and lenders.<\/p>\n

\u201cThe policy could open a window for banks to build capital buffers while putting off full recognition of the coronavirus pandemic\u2019s impact on loan portfolios, but is reminiscent of a strategy adopted over 2010-2016 that delayed and exacerbated problems for the banks,\u201d Fitch said.<\/p>\n

\u00a0<\/p>\n

10:40 AM<\/p>\n

Rupee slips 6 paise to 74.84 against US dollar in early trade<\/h2>\n

The loss in equities is adding pressure on the rupee.<\/p>\n

PTI<\/em> reports: “The rupee depreciated 6 paise to 74.84 against the US dollar in opening trade on Wednesday tracking negative domestic equities and strengthening American currency.<\/p>\n

The local unit opened at 74.78 at the interbank forex market, then lost ground and touched 74.84 against the US dollar, down 6 paise over its last close of 74.78.<\/p>\n

Meanwhile, the dollar index, which gauges the greenback\u2019s strength against a basket of six currencies, rose 0.28 per cent to 93.89.<\/p>\n

Forex traders said strong dollar, muted domestic equities and weak Index of Industrial Production (IIP) data weighed on investor sentiment.<\/p>\n

India\u2019s industrial production declined 16.6 per cent in June on account of disruption in normal business activity following the outbreak of coronavirus pandemic.<\/p>\n

The decline in factory output was widespread across the sectors, including manufacturing, mining, power generation, capital goods and consumer durables, as per the data released by the Ministry of Statistics and Programme Implementation.<\/p>\n

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 153.56 points lower at 38,253.45 and the broader NSE Nifty fell 43.95 points to 11,278.55.<\/p>\n

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,013.66 crore on Tuesday, according to provisional exchange data.<\/p>\n

Brent crude futures, the global oil benchmark, rose 0.36 per cent to USD 44.66 per barrel.<\/p>\n

Meanwhile, the number of cases around the world linked to COVID-19 has crossed 2.02 crore and in India, the number of infections topped the 23-lakh mark.”<\/p>\n

10:20 AM<\/p>\n

PC market declines 37% <\/h2>\n

India\u2019s traditional PC market, including desktops, notebooks and workstations, registered a 37.3% decline year-on-year for the June 2020 quarter to 2.1 million units, according to research firm IDC.<\/p>\n

The traditional PC market had registered a total shipment of 3.3 million units in the June 2019 quarter, the biggest quarter in the past five years as Lenovo had executed a mega deal of 1.1 million units for Electronics Corporation of Tamil Nadu (ELCOT).<\/p>\n

\u00a0<\/p>\n

10:00 AM<\/p>\n

Sensex falls over 200 points in early trade; Nifty below 11,300<\/h2>\n

A poor start to the day for stocks which are down about half a percent.<\/p>\n

PTI<\/em> reports: “Domestic equity benchmark Sensex fell over 200 points in early trade on Wednesday dragged by losses in index-heavyweights Reliance Industries, HDFC Bank and L&T amid negative trend in global markets.<\/p>\n

The BSE Sensex was trading 243.24 points or 0.63 per cent lower at 38,163.77; while NSE Nifty was down 69.60 points or 0.61 per cent at 11,252.90.<\/p>\n

Bajaj Finance was the top loser in the Sensex pack, dropping around 2 per cent, followed by L&T, Bajaj Finserv, Sun Pharma, Kotak Bank, HDFC Bank and Reliance Industries.<\/p>\n

On the other hand, SBI, M&M, Maruti, Bajaj Auto and Titan were among the gainers.<\/p>\n

In the previous session, the Sensex had settled 224.93 points or 0.59 per cent higher at 38,407.01, while the Nifty jumped 52.35 points or 0.46 per cent to finish at 11,322.50.<\/p>\n

Exchange data showed that foreign institutional investors bought equities worth Rs 1,013.66 crore on a net basis on Tuesday.<\/p>\n

According to traders, market sentiment weakened tracking losses in other Asian indices after US equities ended lower.<\/p>\n

Further, weak domestic factory output data dampened investors\u2019 mood, they said.<\/p>\n

India\u2019s industrial production declined by 16.6 per cent in June, on account of disruption in normal business activity following the outbreak of coronavirus pandemic, the government data showed on Tuesday.<\/p>\n

Bourses in Shanghai, Hong Kong and Seoul were in red, while Tokyo was trading with gains.<\/p>\n

Stock exchanges on Wall Street ended on a negative note in overnight trade.<\/p>\n

Global oil benchmark Brent crude was trading 0.56 per cent higher at USD 44.75 per barrel.”<\/p>\n

\u00a0<\/p>\n

9:30 AM<\/p>\n

June industrial output shrinks 16.6%<\/h2>\n

India\u2019s industrial output fell 16.6% year-on-year in June, shrinking for the fourth month in a row, though the monthly measure indicated some recovery in the COVID-19 pandemic-hit sector.<\/p>\n

Analysts polled by Reuters had expected a contraction of 20% in June, compared to a revised 33.9% annual contraction in May, the data showed.<\/p>\n

\u201cWith the lifting of restrictions in the subsequent periods, industrial activity is resuming,\u201d the Ministry of Statistics and Programme Implementation said in a statement on Tuesday.<\/p>\n

\u00a0\n<\/p><\/div>\n