Wednesday, March 11
Asian markets opened lower as US rate cut expectations dwindled and tech valuations raised concerns. Bitcoin also dipped below its year-end level. Japan's economy contracted, impacting tourism and retail stocks, while oil prices eased as Russia resumed exports after a Ukrainian attack.
The Federal Aviation Administration is lifting flight-reduction orders at 40 major airports, allowing normal operations to resume Monday. These unprecedented limits were imposed due to air traffic control staffing shortages during the government shutdown. Staffing levels have now stabilized, enabling the emergency order to end.
CLSA downgraded Jubilant Foodworks to underperform, citing missed sales estimates. Jefferies maintained a buy on Voltas despite Q2 misses, while Bernstein upgraded Muthoot Finance to outperform on strong AUM growth. HSBC held Alkem Laboratories with a raised target, and Kotak initiated a sell on Eicher Motors due to expensive valuations.
Indian enterprises are facing significant financial losses from cyber breaches, with nearly a quarter experiencing over $1 million in damages in the last three years. Despite this, cybersecurity spending is set to increase, driven by a focus on AI and cloud security, though talent shortages remain a key challenge.
A new analysis warns that the global shift away from Russian gas is creating market instability due to tighter supplies and political realignments. Countries are increasingly relying on the US for LNG, described as a volatile ally, with potential for price swings and political friction as the US expands its export capacity.
Goldman Sachs forecasts global equities to yield 7.7% annually over the next decade, despite high valuations. This projection is supported by expected nominal growth, profitability, and shareholder payouts, with earnings growth being the primary driver. Emerging Markets are anticipated to lead returns, while the US is expected to lag.
Gold and silver prices retreated on Monday following hawkish remarks from US Federal Reserve officials, dampening hopes of an imminent rate cut. This sentiment shift pulled bullion prices lower after a strong rally last week. Traders are now awaiting crucial US economic data, particularly the non-farm payrolls report, for further policy cues.
Japan's economy contracted by 0.4% in the July-September quarter, its first setback in six quarters, as exports faltered under US tariffs. Prime Minister Sanae Takaichi's new administration is preparing a stimulus package exceeding 17 trillion yen to counter the downturn and support growth.
India's retail market is poised for a massive $1 trillion expansion by 2030, driven by rising incomes and digital adoption. Expect a significant shift from traditional stores to e-commerce, quick commerce, and direct-to-consumer brands. New-age digital brands are scaling rapidly, catering to a confident, modern, and increasingly regional Indian shopper.
