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GLOBAL MARKETS - Stocks struggle after tech reboot, euro in ECB crosshairs

The tech-led reboot of stock markets stalled in Europe on Thursday as traders pulled back to hear just how twitchy the European Central Bank has become about the euro’s run-up in recent months. The ECB’s upcoming meeting, along with emergency Brexit talks in London after negotiations turned chaotic again, and wilting commodity markets kept the bulls firmly on the leash. An early push from the pan-European STOXX 600 quickly faltered as tech struggled, the euro and government bonds gained pre-ECB, and drooping oil and metals prices hit the region’s drillers and miners. Analysts were waiting to see whether reports that the ECB will fractionally revise up its COVID-battered economic and inflation forecasts later would ultimately affect the chances of a further ramping up of stimulus, which would rein in the euro. The currency has firmed 8% against the dollar since the spring and more than 4% against a basket of currencies weighted by the bloc’s foreign trade. It was hovering at $1.1830, not far below the sensitive $1.20 level. “What happens at the ECB today is quite important for global markets,” said TD Securities’ European head of currency strategy, Ned Rumpeltin. “There is still one trade, which is reflate or die,” he said, referring to stimulus aid lifting asset prices. “So the degree to which the ECB either takes that one step forward or one step back today will be important.” Overnight, Read the full article

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Silver Lake to invest Rs 7,500 crore in Reliance Retail for 1.75% stake

Oil-to-telecom heavyweight Reliance Industries (RIL) on Wednesday announced that Silver Lake will invest Rs 7,500 crore into its retail subsidiary Reliance Retail (RRVL). The investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis, the company informed in an exchange filing to the BSE. This is the second major investment Silver Lake in an RIL subsidiary. It had earlier invested $1.35 billion in Jio Platforms earlier this year. RIL, which is looking to expand its retail business through both online and offline channels, is talking to a range of global investors who are looking to invest in India’s largest retail firm and take on its e-commerce rivals – Amazon India and Walmart-owned Flipkart in the Indian market. The company has also been on a shopping spree to expand and consolidate its presence both in online and offline markets in the country. Last month, RRVL had agreed to acquire the retail business of Kishore Biyani’s Future Group in a consideration of Rs 24,713 crore. The company had also acquired a majority equity stake in online pharmacy Vitalic Health Pvt Ltd and its subsidiaries — known as Netmeds — for a cash consideration of around Rs 620 crore. Source link Read the full article