Blog for Stock tips, Equity tips, Commodity tips, Forex tips: Sharetipsinfo.com

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

As broader gauges of implied currency volatility remain near all-time lows, pockets of turbulence are emerging in a potential signal that the foreign-exchange market could be less stable in 2020.

Take the yuan. After rising more than 1.5 per cent in the month prior to the January 15 signing of the US-China trade agreement, the currency has relinquished those gains amid concerns that Chinese growth could stumble as the coronavirus spreads. Singapore, a key financial hub, is seeing historic price swings due to angst around the outbreak.The uncertainty has helped lift Asian currency volatility to its highest level in six months and the greenback to a two-month high, a development that could rekindle efforts by the US administration to "talk down" the dollar.

In addition to anxiety about growth, the yuan may also sway more freely due to a clause in the phase-one trade deal that reaffirms commitments to refrain from competitive devaluation, said Alan Ruskin, Deutsche Bank's chief international strategist.

China "will have a harder time in general containing volatility if the US is on the lookout for intervention, or surrogate intervention," Ruskin said by phone.

Both the Australian dollar-yen and New Zealand dollar-yen are "risk blow-up pairs" and can be used as proxies for capturing potential volatility in Asia, Ruskin said. One-year volatility in both pairs is relatively cheap compared to most other Group-of-10 peers, he said.Record low implied volatility in Europe's common currency against the US dollar may have an outsized impact on depressing broader gauges of price swings. But it doesn't mean the euro isn't subject to choppiness elsewhere. Implied volatility in euro-Swiss franc, a barometer of global risk appetite, has climbed to a premium to euro-dollar volatility. At the lowest in more than two years in the spot market, euro-franc is teetering near a key technical level, a breach of which could spark a sharp move lower by the common currency.

Meanwhile, Eastern European currencies have also seen price swings as central bank policy rates diverge. On Thursday, the Czech central bank unexpectedly raised rates 25 basis points to 2.25 per cent to tame inflation pressures.

Whether these pockets of turbulence spread to the broader market could depend on several factors. To be sure, volatility may not return to levels seen a decade ago should central banks continue to actively use their balance sheets to manage liquidity issues or regulatory barriers to capital movement arise.

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

The U.S. dollar was little changed on Tuesday in Asia ahead of Federal Reserve Chairman Jerome Powell’s testimony later in the day.

The U.S. Dollar Index that tracks the greenback against other currencies last traded 98.748, up 0.03%.

Powell will testify before Congress on Tuesday on Wednesday. With the global economy bracing for a potential slowdown due to the coronavirus outbreak, traders will focus on Powell’s take on the fallout and see if he would downplay the impact of the coronavirus.

The EUR/USD pair was near flat at 1.0909. Yesterday, the euro fell to a four-month low after data showed Euro area investor confidence missed estimates. Investors are worried that the euro area economy will weaken further as the coronavirus continues to spread rapidly.

"The coronavirus and its impact on the global supply chains is seen as a much bigger issue for Germany than for the U.S., thus EUR/USD pair is under pressure," ING said.

On Monday, the World Health Organization warned that the spread of cases among people who have not been to China could be "the spark that becomes a bigger fire".

The disease has claimed 1,016 lives in China so far, Chinese health officials reported on Monday.

The USD/CNY pair was down 0.2% to 6.9694.

Meanwhile, the USD/JPY pair gained 0.2% to 109.91 as Asian stocks recovered. Hong Kong’s Hang Seng Index surged almost 2%, while South Korean stocks also rose more than 1%.

The AUD/USD pair rose 0.5% to 0.6716. Data from the Australian Bureau of Statistics showed Australia’s December home loan lending accelerated to its highest level since July 2018.

Try Vip Forex Signals for profit

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

There is good news for individuals who are looking to buy a medical cover with no limits on the sum-insured.

Bajaj Allianz General Insurance has launched a novel individual health insurance policy that provides unlimited sum-insured (SI). This policy provides a room-rent range fixed limit option where indemnity is 100 times the daily room rent. Beyond that, there will be a co-pay element.

Under Health Infinity, a person can choose coverage limit according to the per day room rent options which range between Rs 3,000 to Rs 50,000. Based on the chosen option, s/he will be indemnified 100 times of the per day room rent limit.

If the claim amount exceeds this, a co-payment of 15 percent, 20 percent, or 25 percent is applicable as opted by the customer at the time of purchasing policy. This co-payment is applicable only if the claim amount exceeds 100 times room rent and not on the total claim amount.

There is good news for individuals who are looking to buy a medical cover with no limits on the sum-insured.

Bajaj Allianz General Insurance has launched a novel individual health insurance policy that provides unlimited sum-insured (SI). This policy provides a room-rent range fixed limit option where indemnity is 100 times the daily room rent. Beyond that, there will be a co-pay element.

Under Health Infinity, a person can choose coverage limit according to the per day room rent options which range between Rs 3,000 to Rs 50,000. Based on the chosen option, s/he will be indemnified 100 times of the per day room rent limit.

If the claim amount exceeds this, a co-payment of 15 percent, 20 percent, or 25 percent is applicable as opted by the customer at the time of purchasing policy. This co-payment is applicable only if the claim amount exceeds 100 times room rent and not on the total claim amount.

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

The U.S. dollar remained in demand Tuesday, boosted by its safe haven status as the coronavirus outbreak continues to spread and also by signs of strength from the U.S. economy.

At 03:00 ET (0800 GMT), EUR/USD traded at 1.0911, marginally up on the day, after falling to a four-month low on Monday. Similarly, GBP/USD traded at 1.2909, just 0.1% lower, having touched a two-month low of $1.2870 Monday. Futures on the Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 98.773, up 0.1%, having climbed as high as 98.858 on Monday, its highest level since mid-October.

The death toll from the coronavirus continues to mount, claiming over 1,000 victims in mainland China and infecting over 40,000 people.

Measures of returning workers and passenger traffic flows within China suggested the virus had "a devastating impact on China's economy in January and February," said analysts at Nomura in a research note.

Anticipation of lower Chinese demand has has kept commodity-like currencies on the defensive for the last couple of weeks, with the Aussie dollar still close to a 10-year low and the Brazilian real, Russian ruble and South African rand all falling by between 3.7% and 5.6% over the last month.

Anticipation of lower Chinese demand has has kept commodity-like currencies on the defensive for the last couple of weeks, with the Aussie dollar still close to a 10-year low and the Brazilian real, Russian ruble and South African rand all falling by between 3.7% and 5.6% over the last month.

"The coronavirus hitting has money going into the U.S. dollar," said Westpac FX analyst Imre Speizer in a Reuters report. "You've seen a good run of economic data in the U.S., that's been another support.”

On Friday, the U.S. nonfarm payrolls for December continued to show robust employment growth, while sentiment surveys have tended to surprise to the upside.

Attention now turns to the testimony from Federal Reserve Chairman Jerome Powell to Congress, on both Tuesday and Wednesday.

The Fed has made clear its intentions to keep its powder dry regarding interest rates in the near future.

Also of interest will be the release of the U.K. gross domestic product figure for the fourth quarter of 2019, at 04:30 AM ET (0930 GMT).

The U.K. economy probably narrowly avoided a contraction at the end of 2019, with the Investing.com poll forecasting no growth on the quarter, resulting in annual growth of 0.8%.

Any upside surprise could boost a weak pound, but the tricky trade negotiations with the EU are likely to leave sterling on the back foot for the foreseeable future.

Also of interest will be a speech by European Central Bank President Christine Lagarde at 09:00 AM ET (1400 GMT). The central bank is in the middle of a major strategic review, and any comments from Lagarde over whether it changes its inflation goal will be of interest. Chief economist Philip Lane and newly-appointed board member Isabel Schnabel are also due to speak in the course of the day.

Get Live Forex Signals

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

- The U.S. dollar and Japanese yen were in demand on Tuesday, along with the bonds of both countries, as worries about the spread of coronavirus had investors heading for safe harbors.

The World Health Organization said overnight that the spread of cases among people who have not been to China could be "the spark that becomes a bigger fire".

Coronavirus has killed 1,016 people in mainland China, Chinese health officials said on Monday, though they also reported a drop in the number of daily new cases.

The dollar, seen as a safe haven owing to its position as the world's reserve currency, stood by a four month high against the euro at $1.0910 (EUR=). Against a euro-heavy basket of currencies it also stood at a four month high of 98.832 (DXY).

The greenback touched a three-month high of $0.6378 per New Zealand dollar , and at $0.6686 per Aussie dollar was not far above the decade peak of $0.6657 hit on Monday .

"It's been helped out by a lot of things," said Westpac FX analyst Imre Speizer.

"The coronavirus hitting has money going into the U.S. dollar," he said. "You've seen a good run of economic data in the U.S., that's been another support ... the vulnerable ones are the commodity countries like Australia and New Zealand."

China's central bank has moved to support the economy by cutting interest rates and flushing the market with liquidity. But with the extent of spread and its impact still unknown, investors have dumped currencies exposed to China for dollars and yen.

That left the yen fairly stable against the dollar - it last sat at 109.75 yen per dollar - but gaining steadily on other Asian currencies. Trading was subdued with Japanese markets closed for a holiday.

The Australian and New Zealand dollars have dropped more than 4% on the yen this year (AUDJPY=D3) (NZDJPY=D3). The Singapore dollar has lost 3% in as many weeks (SGDJPY=R).

U.S. Treasury and Japanese government bond prices have steadily climbed this year.

"The risk of a larger downgrade in Chinese GDP growth over Q1 20 and 2020 as a whole is gaining momentum," said Richard Grace, chief currency strategist at Commonwealth Bank.

"With China's economy accounting for some 17% of world GDP, but accounting for a significant contribution to growth in the global economy, the risk of a larger downgrade to global growth is clear," he said.

"Upside in AUD/USD is limited, and downside risks continue to mount."

Get Live Forex Signals for Profit

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

The cable has dropped below 1.29, hitting the lowest levels since November amid Brexit concerns and USD strength. Speculation about EU-UK relations and coronavirus headlines are set to move the pound, according to FXStreet’s Yohay Elam.

Key quotes

“The bloc could reportedly try to move the clearing of euro contracts from London to within the EU and may also move to withdraw concessionOfficial negotiations will kick off on March 3, but press briefings and leaks suggest talks will be tough.”

“The US dollar remains underpinned by upbeat figures such as the Non-Farm Payrolls report which showed an increase of 225,000 jobs in January.”

“Coronavirus headlines are also benefitting the greenback, which benefits from safe-haven flows. The respiratory disease has taken the lives of over 900 people with over 40,000 infected, the vast majority in China.” 

Try Vip Forex Signals for profit

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

The moderation in India's growth coincides with a deceleration in growth of global output and the IMF has projected the country's GDP growth to pick up to 5.8 per cent in 2020, Union Minister Anurag Thakur said in Lok Sabha.

Thakur said India's growth trajectory over the period 2014-15 to 2018-19 is characterised by macroeconomic stability with real GDP growth averaging 7.4 per cent.

"The moderation in India's growth coincides with a deceleration in growth of global output, as estimated by the IMF, in recent years," he said replying a question of Congress MP Abdul Khaleque and TMC's Saugata Roy during Question Hour.

Thakur, union minister of state for finance, said the IMF has projected India's GDP growth to pick up to 5.8 per cent in 2020.

The economic survey 2019-20 has also projected a pick-up in India's growth in the range of 6.0 per cent to 6.5 per cent in 2020-21.

The RBI's sixth bi-monthly monetary policy statement, 2019-20 has also projected GDP growth of 6.0 per cent for 2020-21.

Thakur said as per the National Statistical Office's first advance estimates of national income, 2019-20, India's real GDP is estimated to grow at 5.0 per cent in 2019-20.

He said the World Economic Outlook Update (January 2020) published by the International Monetary Fund (IMF) has revised India's GDP growth rate to 4.8 per cent in 2019.

This revision in growth may not cause any stress in the Non-Banking Financial Companies (NBFCs) sector as NBFCs are well capitalised, he said.

The minister said the government has implemented several major structural reforms in recent years to bolster investment and growth.

These include Insolvency and Bankruptcy Code (IBC) to strengthen the financial system, Goods and Services Tax (GST) to simplify the indirect taxation regime, Make-in-India programme to boost domestic manufacturing capacity, liberalisation of Foreign Direct Investment (FDI) and Jan Dhan-Aadhaar-Mobile (JAM) Trinity towards greater transparency, efficiency and financial inclusion, he said.

Thakur also said recently, the corporate tax rate has been cut to 15 per cent for new domestic manufacturing companies, which is amongst the lowest in the world.

In December 2019, he said, the government has announced the Rs 103 lakh crore National Infrastructure Pipeline which would significantly boost infrastructure and spur growth impulses in the economy.

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

GBP/USD Exchange Rate Steady ahead of UK GDP Figures

The Pound US Dollar (GBP/USD) exchange rate is holding its ground at the start of this week’s session as markets brace for publication of the UK’s latest GDP estimate.

At the time of writing the GBP/USD exchange rate is trading at around $1.2928, virtually unchanged from today’s opening rate.

Pound (GBP) to Slump as UK Growth Stagnates?

The Pound (GBP) looks poised to slump on Tuesday as the UK publishes its latest GDP figures.

Barring a significant uptick in economic activity in December, tomorrow’s estimate of GDP is expected to show that the UK economy stalled in the last quarter of 2019.

The likely stagnation of growth comes amid heightened political uncertainty in the UK in the run up to December’s general election.

Should growth have stalled in line with expectations in the fourth quarter, it’s also likely to keep the pressure on the Bank of England (BoE) to ease it monetary policy in the near-term, potentially opening the door to an interest rate cut in March.

Coronavirus Fears to Underpin Demand for the US Dollar (USD)?

Meanwhile, the US Dollar (USD) looks likely to remain well supported this week as markets continue to panic over the coronavirus outbreak in China.

While reports of new cases are beginning to slow, the global death toll has now risen to over 900 topping that of the Sars outbreak in 2003, which was estimated to have cost the global economy over $30bn.

Economists predict that the impact of the coronavirus outbreak on global growth will be significantly more serve due to China’s greater role in global trade, but it remains unclear just how large an impact this will be.

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

Stocks slipped across the Asia Pacific on Monday as investors continued trying to gauge when economic activity might rebound after the hit from the coronavirus.

Benchmarks in Hong Kong, Shanghai, Tokyo and Seoul were lower, though moves eased following a report that Apple Inc (NASDAQ:AAPL).’s main manufacturer got a green light to resume some production. That reversed declines in U.S. equity futures, which traded slightly higher as of noon in Tokyo. The Australian dollar climbed and the yuan rose past 7 per dollar offshore. Treasuries were flat, while oil traded around $50 a barrel in New York.

With cases outside of China continuing to increase, investors will be monitoring whether the rate of change kicks up a gear. Meantime, monetary authorities across emerging markets have stepped in. The People’s Bank of China moved to keep liquidity ample Monday through reverse-repurchase agreements.

“This coronavirus seems to be going on for longer, is infecting more people and the hit to growth will be longer,” Diana Mousina, an economist at AMP Capital Investors Ltd., told Bloomberg TV in Sydney. “You won’t be able to recoup all of the negative impacts in the first quarter.”

Here are some key events coming up:

• Earnings season continues with reports including: Alibaba (NYSE:BABA), Softbank, Nissan, Airbus, Nestle and AIG (NYSE:AIG).
• Federal Reserve Chairman Jerome Powell delivers his semiannual testimony in Congress on Tuesday and Wednesday.
• Thursday brings a gauge of underlying U.S. inflation, the core consumer price index. It’s expected to increase to 0.2% in January, a faster pace than in December.
• China and the U.S. on Friday lower tariffs on billions of dollars of respective imports, as part of the trade deal signed last month.

And these are the main moves in markets:

Stocks

• Japan’s Topix index dropped 0.6%. as of 12:35 p.m. in Tokyo.
• The Shanghai Composite Index slid 0.4%
• Hong Kong’s Hang Seng Index declined 0.7%.
• Futures on the S&P 500 were up 0.1%. The underlying gauge fell 0.5% on Friday.
• South Korea’s Kospi index retreated 0.6%.
• Euro Stoxx 50 futures slid 0.1%.

Currencies

• The yen was little changed at 109.80 per dollar.
• The offshore yuan ticked up 0.2% to 6.9952 per dollar.
• The euro bought $1.0951, little changed.
• The Australian dollar gained 0.4% to 66.97 U.S. cents.

Bonds

• The yield on 10-year Treasuries was steady at 1.59%.
• Australia’s 10-year yield declined two basis points to 1.02%.

Commodities

• West Texas Intermediate crude oil fell 0.2% to $50.22 a barrel.
• Gold was little changed at $1,570.41 an ounce.

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

Insurance companies largely remained passive investors. But, in a welcome move, the Insurance Regulatory and Development Authority of India (IRDAI) has finally nudged a behavioural change.

The regulator has demanded that insurers keep a close eye on their investee firms and disclose this publicly. After all, it is policyholder’s money that is being invested in these companies.

It said that while insurers can determine their own engagement strategy, the stewardship policy should clearly set out the criteria/circumstances in which they will actively intervene. The regulator also said that the policy should provide for regular assessment of the outcomes of intervention by the insurer.

Stewardship refers to a set of best practices which insurance companies need to follow. IRDAI has now offered a fresh set of these examples to point out what insurers are required to do.

"Intervention should be considered regardless of whether an active or passive investment policy is followed," IRDAI said. This is a crucial development and puts the onus on the insurer to ensure that investee firms’ maintain proper financial health and sound corporate governance.

It has been predominantly noticed that insurers abstain from voting on crucial matters in investee firms. In a few cases, smaller insurers blindly followed the voting decisions of their larger counterparts. Considering that policyholder funds are being used to invest, it is pertinent that independent calls regarding board matters are taken by each insurer.

For voting, IRDAI has made the policy more concrete to ensure that insurers do not sit back and let companies make wrong business decisions.

For insurers with assets up to Rs 2.5 lakh crore, if the insurer’s stake is 3 percent or above in a company they have to compulsorily vote. For those with assets above Rs 2.5 lakh crore, the mandatory voting threshold is 5 percent or above.

When investee companies fail, policyholder funds are impacted. A wrong business decision or a corporate governance lapse in these firms would create a negative impact on the stock price. This, in turn, hurts the investment income of insurers.

Early signals of possible defaults or distress are available to insurers in such investee companies. Thus, rather than waiting for an entity to go to bankrupt, insurers could play an active role in questioning the action of such companies.

IRDAI has made it clear that the policyholder is the ‘ultimate investor’. Hence, all decisions taken in investee firms by insurers will now have to be periodically disclosed publicly. The regulator also said that this should be in a simple format that can be understood by the general public.

There have also been cases where large insurers cross-invest in sister entities. IRDAI has said that potential conflict of interest scenarios also need to be disclosed by insurers. It said that a blanket ban on certain investments could also be considered.

For large corporates with legacy brand-names, it has often been noticed that the insurer sides with the investee firm management on strategic business decisions. This is despite minority shareholders and proxy advisory firms opposing such a move.

In such cases, insurers need to apply rational thought to their voting decision and not blindly support the top leadership.

Insurers have been forced to take these steps in order to bring more transparency in the sector and protect policyholder interests. As a policyholder, individuals also need to seek and verify the investment decisions of their insurance company on a periodic basis.

In fact, policyholders do and should exercise tremendous control over these decisions.