Gold set for second straight weekly drop
Gold prices were flat on Friday but on course for their second straight weekly decline, with worries over major central banks potentially implementing big interest rate hikes to target runaway inflation weighing on bullion demand.
Spot gold was last up 0.1% to $1,824.72 per ounce at 0215 GMT, after hitting a one-week low of $1,820.99 earlier in the session. U.S. gold futures fell 0.2% to $1,825.90.
Gold prices have dropped about 0.9% this week.
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Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 95 points.
Japan’s inflation tops BOJ target for 2nd month in test of monetary stance
Japan’s annual core consumer inflation topped the central bank’s target for a second straight month in May, data showed on Friday, highlighting the intensifying pressure on the country’s fragile economy from soaring global raw material costs.
The data challenges the Bank of Japan’s view that the recent rise in prices is temporary, and does not warrant withdrawing monetary stimulus. But with wage growth subdued, many analysts expect the BOJ to remain firmly focussed on stimulating a sluggish economy rather than fight inflation with interest rate hikes.
Indian economy to grow by 7-7.8% in FY23: Experts
The Indian economy can grow by 7-7.8 per cent this fiscal on the back of better agriculture production and a revitalised rural economy amid global headwinds mainly due to the ongoing Russia-Ukraine war, eminent economists said.
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Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services:
Markets are witnessing headwinds from fear of global recession, monetary tightening, depreciating rupee, and rise in bond yields. On positive side, fall in crude prices and value buying in beaten down counters have helped market to gain some momentum today.
While the overall market set up continues to remain ‘Sell on rise’ – intermittent bouts of relief rally can’t be ruled out. Hence we suggest trader to remain cautious of sharp volatility and carry light positions going forward.
Crude Prices Update:
Oil prices rose slightly in early Asian trade on Friday as nations seek to address global crude oil and fuel supply tightness.
Brent crude futures rose 39 cents, or 0.4%, to $110.44 a barrel at 0012 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.4%, to $104.31 a barrel.
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Asian markets trade higher:
Wall Street gains:
Wall Street’s main indexes posted solid gains on Thursday, fueled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.
The Dow Jones Industrial Average rose 194.23 points, or 0.64%, to 30,677.36, the S&P 500 gained 35.84 points, or 0.95%, to 3,795.73 and the Nasdaq Composite added 179.11 points, or 1.62%, to 11,232.19.
SGX Nifty: Trends on SGX Nifty indicate a positive start for the broader index in India, with a gain of 95.50 points or 0.61 percent. The Nifty futures were trading around 15,660 level on the Singaporean Exchange at 7:30 IST.
Accenture’s Q3 Earnings:
US-based IT major Accenture announced its results for Q3FY22 on Thursday, June 23, beating revenue expectations for the quarter ending May 31. Accenture reported revenues of $16.2 billion, up 22% year-on-year (YoY).
The IT major’s operating income was up 23% and came in at $2.6 billion, and its operating margin was at 16.1%. The company also reported its second-highest bookings of $17 billion. For 2022, it now expects revenue growth to be in the range of 25.5-26.5%, as compared to 24-26% previously.
For Q4, Accenture tempered its revenue forecast, and additionally, toned down its profit forecast for the 2022 fiscal (Accenture follows a September-August financial year).
