Global Market Update date 13.11.24

Global Market Update – Better than expected US Q3 GDP and Personal Consumption data lifted US market up to 1% …Dollar Index surging to 2-year high …Share of Accenture is up 7%...INFY ADR up by 3%

· US stocks kicked off Thursday’s session higher, suggesting that the selloff after the Federal Reserve signaled fewer rate cuts next year was overdone. The yen slid as the Bank of Japan left borrowing costs unchanged. The S&P 500 rose 1% following its biggest loss for a scheduled Fed decision day since 2001. The Nasdaq 100 jumped 0.9%. The 10-year US Treasury yield rose to 4.54%, a level last seen in May. US Q3 GDP reported better than expectation at 3.1% vs 2.8% previous quarter, better than Bloomberg estimated of 2.8%. Personal Consumption surged to 3.7% vs 3.5% previous quarter, better than Bloomberg estimated of 3.6%.

Forward Markets Commission to be merged with SEBI from September 28

The government on Wednesday notified the merger of commodities market regulator Forward Markets Commission (FMC) with Sebi with effect from September 28.

"Forward Contracts Regulation Act (FCRA) 1952 gets repealed and Regulation of Commodity Derivatives Market will shift to Securities and Exchange Board of India (Sebi) under Securities Contracts Regulation Act (SCRA) 1956 with effect from 28th September, 2015," the Finance Ministry said in a statement.

Finance Minister Arun Jaitley, in his Budget speech, had announced the merger of FMC with the capital market regulator Sebi to strengthen the regulation of commodity futures market.

A unified regulator for commodities and capital markets will help streamline monitoring of commodity futures trading and curb wild speculations. In the wake of a Rs 5,500-crore payment crisis at the National Spot Exchange Ltd, FMC was brought under Finance Ministry in 2013.

Enabling legislation, amending the Securities Contracts Regulation Act (SCRA) 1956 and FCRA 1952 were proposed in the Finance Act, 2015.

In the beginning, FMC was only regulating regional commodity exchanges and its role was expanded after the emergence of national electronic trading platform in early 2000.

Currently, there are three national and six regional bourses for commodity futures in the country. The Financial Sector Legislative Reforms Commission (FSLRC) had recommended that Sebi, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).