Global Markets News

A look at the day ahead from Tommy Wilkes, senior markets correspondent, EMEA. The views expressed are his own.

Global stock markets fell and safe havens such as bonds and the Japanese yen gained on Friday, as investors awaited Washington's response to China tightening control over the city of Hong Kong.

* FTSE 100 down 0.8%, FTSE 250 off 0.7% (Adds analyst comment; updates prices)

Japanese stocks retreated from three-month highs on Friday as escalating U.S.-China tensions over Hong Kong prompted investors to lock in profits, but easing coronavirus restrictions helped Nikkei mark its best month in more than four-and-a-half years.

China stocks edged up on Friday to end the week higher, as expectations that Beijing would take necessary measures to underpin the world's second-largest economy overshadowed concerns over escalating Sino-U.S. tensions.

UK shares fell for the first time this week on Friday, as fears over Washington's response to Beijing tightening control over Hong Kong overshadowed optimism about a pickup in business activity with the easing of a coronavirus-induced lockdown.

Paddy Power, Betfair and Poker Stars owner Flutter Entertainment has raised 812 million pounds via a share placement that will see U.S. media group Fox Corp increase its investment in the world's largest online betting group.

Britain's FTSE 100 index is seen opening 52 points lower on Friday, according to financial bookmakers, with futures down 0.9%.

Here's what you need to know about the coronavirus right now:

The yen rose against major currencies on Friday as caution ahead of U.S. President Donald Trump's press conference on China's treatment of Hong Kong triggered safe-haven inflows.

Stock markets dipped and safe-havens such as bonds and Japan's yen firmed on Friday, as investors awaited Washington's response to China tightening control over the city of Hong Kong.

Some sectors of Australia's economy will require additional stimulus, Prime Minister Scott Morrison said on Friday.

China stocks were little changed on Friday, but were on track for weekly gains despite rising Sino-U.S. tensions, on expectations Beijing will take necessary measures to underpin the world's second-largest economy.

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_05292020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 5:00 pm: Government to release April Infrastructure output data in New Delhi. 5:30 pm: Government to release January-March quarter and FY20 GDP data in New Delhi. INDIA TOP NEWS •India's economy seen slowing rapidly in March quarter, with worse to come Gross domestic product data out later on Friday is expected to show India's economy grew at its slowest pace in at least two years in the March quarter as the coronavirus pandemic weakened already declining consumer demand and private investment. •Abu Dhabi's Mubadala in talks on $1 billion stake in Reliance's Jio Platforms -sources Abu Dhabi state fund Mubadala is in talks with Reliance Industries about investing around $1 billion in the Indian conglomerate's Jio platforms, three sources told Reuters. •Google considering taking stake in Vodafone Idea -FT Alphabet's Google is exploring an investment in Vodafone Group's struggling India business, the Financial Times reported on Thursday, citing people familiar with the matter. •NTPC keen to buy Reliance Group's Delhi power distribution units NTPC said it was interested in buying a majority stake in Reliance Group's power distribution assets in Delhi. •India allows export of paracetamol API - statement India has ended restrictions on export of active pharmaceutical ingredients (API) of common pain reliever paracetamol, the Directorate General Of Foreign Trade (DGFT) said in a statement on Thursday. •JPMorgan reshuffles South Asia leadership JP Morgan has named Leo Puri chairman of its South and Southeast Asian operations after Kalpana Morparia announced her retirement, according to a statement. •Nissan settles dispute with Indian state over unpaid dues - sources Nissan Motor has agreed to settle a long-running dispute with the Indian state of Tamil Nadu after claiming it was owed $660 million in unpaid dues and damages, six sources told Reuters. GLOBAL TOP NEWS •Hong Kong govt warns removing U.S. special status is "double-edged sword" Hong Kong's government warned Washington that withdrawing its special U.S. status, which has underpinned the city as a global financial hub, could be a "double-edged sword" and urged the United States to stop interfering in internal affairs. •Pandemic's hit to Japan's factory, retail sectors deeper than expected Japan's April factory output fell at a much faster-than-expected pace and retail sales tumbled the most in more than two decades as a coronavirus-triggered state of emergency dealt a heavy blow to the economy. •Trump move could scrap or weaken law that protects social media companies President Donald Trump said he will introduce legislation that may scrap or weaken a law that has protected internet companies, including Twitter and Facebook, in an extraordinary attempt to regulate social media platforms where he has been criticized. LOCAL MARKETS OUTLOOK (As reported by NewsRise) •SGX Nifty nearest-month futures were trading 0.2% lower at 9,410.30. •The Indian rupee is expected to trade little changed against the dollar tracking rangebound Asian peers ahead of U.S. President Donald Trump’s press conference on China, likely over Hong Kong’s new security law. •The Indian government bond yields are likely to rise in early session, ahead of a fresh supply of notes at a weekly auction today.The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 5.96%-6.04% today. GLOBAL MARKETS • Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday. • Asia's stock markets pulled back and major currencies were held in check, as investors await the U.S. response to China tightening control over the city of Hong Kong. • The dollar was hemmed into a narrow trading range as traders' focus shifted to U.S. President Donald Trump's response to China's passage of a national security law for Hong Kong. • U.S. Treasury yields rose on Thursday as stocks gained, reducing demand for safe haven bonds, and after the Treasury sold a record large amount of seven-year notes to slightly soft demand. • Oil prices edged lower after U.S. inventory data showed lacklustre fuel demand in the world's largest oil consumer while worsening U.S.-China tensions weighed on global financial markets. • Gold prices ticked up as the Sino-U.S. rift deepened over further moves by Beijing to impose a security law on Hong Kong, lifting the allure of safe havens amid market uncertainties caused by the pandemic. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.72/75.75 May 28 (168.44) crore (2,454.11) crore 10-yr bond 5.99 pct Month-to-date 12,572 crore (22,544) crore yield Year-to-date (42,342) crore (1,05,023) crore (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 75.72 Indian rupees) (Compiled by Prajakta Gadgil in Bengaluru)

Asia's stock markets pulled back and major currencies were held in check on Friday, as investors await the U.S. response to China tightening control over the city of Hong Kong.

The dollar was hemmed into a narrow trading range on Friday as traders' focus shifted to U.S. President Donald Trump's response to China's passage of a national security law for Hong Kong.

The dollar was hemmed into a narrow trading range on Friday as traders' focus shifted to U.S. President Donald Trump's response to China's passage of a national security law for Hong Kong.

A U.S. judge on Thursday said institutional investors, including BlackRock Inc and Allianz SE's Pacific Investment Management Co, can pursue much of their lawsuit accusing 15 major banks of rigging prices in the $6.6 trillion-a-day foreign exchange market.

Asian shares were set to dip in choppy trade on Friday as worries about worsening U.S.-China ties offset the fillip from hopes massive government stimulus can jump-start the world economy.