World shares sink, oil slips as investors brace for Israeli invasion of Gaza
Bangkok(AP): World shares fell and oil prices edged lower as investors braced Monday for an expected invasion by Israel in the Gaza Strip.
The futures for the S&P 500 and the Dow industrials edged 0.1% higher. Germany's DAX shed 0.5% to 15,104.87 and the CAC 40 in Paris declined 0.5%, to 6,965.51. Britain's FTSE 100 was down 0.1% at 7,589.92.
Israeli forces, supported by a growing deployment of US warships in the region and the call-up of some 360,000 reservists, have positioned themselves along Gaza's border and drilled for what Israel said would be a broad campaign to dismantle the Hamas.
"Who can blame markets for being jittery," RaboResearch Global Economics and Markets said in a commentary. "The world now holds its breath as Israel prepares for a full-scale ground invasion of Gaza, with only unseasonal torrential rain delaying the seemingly inevitable."
The conflict has jolted oil markets, adding to uncertainties already hanging over the global economic outlook. The Gaza region is not a major producer of oil, but the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum, with broad ramifications for many industries.
On Friday, the price of a barrel of benchmark US crude oil jumped 4.78 to settle at 87.69. Brent crude, the international standard, climbed 4.89 to 90.89 per barrel. Early Monday, US crude oil was down 17 cents at 87.52 per barrel. Brent gave up 28 cents to 90.61 a barrel.
Worries about the state of the US economy have also undermined recent optimism over the possibility that the Federal Reserve might halt its interest rate hikes aimed at quashing inflation.
Persisting inflationary pressures along with higher oil prices are casting doubts on that, and threatening the "'remarkable resilience' of the US economy, which buoyed stock markets until a few months ago," Stephen Innes of SPI Asset Management said in a report.
In Asian trading Monday, Tokyo's Nikkei 225 sank 2% to 31,659.03 and the Hang Seng in Hong Kong lost 1% to 17,640.36. South Korea's Kospi declined 0.8% to 2,436.24.
The Shanghai Composite index was 0.5% lower, at 3,073.81, while Bangkok's SET skidded 2.1%. Australia's S&P/ASX 200 was down 0.4% at 7,026.50.
On Friday, US stocks mostly fell as they were buffeted by competing waves of optimism and fear.
The S&P 500 slipped 0.5% to 4,327.78 and the Nasdaq composite fell 1.2% to 13,407.23. The Dow industrials edged up 0.1% to 33,670.29.
Worries about the war pulled Treasury yields lower, which often happens when investors head for safer investments during times of stress. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Thursday.
Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year.
Several US banking giants said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.
JPMorgan Chase rose 1.5% after its profit for the third quarter climbed 35% from a year earlier. It benefited from a rise in interest rates, but its CEO Jamie Dimon also warned that "this may be the most dangerous time the world has seen in decades".
Wells Fargo rose 3.1% after it likewise topped analysts' expectations for profit during the summer quarter.
UnitedHealth Group beat Wall Street's profit expectations, and its stock climbed 2.6%.
Dollar General jumped to the biggest gain in the S&P 500, up 9.2%, after it said Todd Vasos will be returning as CEO.
In currency dealings early Monday, the US dollar was unchanged at 149.55 yen. The euro rose to 1.0535 from 1.0515.
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Minister Patil chairs industry meetings to chart growth for key sectors in Karnataka
Bengaluru (PTI): Karnataka Minister M B Patil on Tuesday chaired meetings with industry representatives from the aerospace and defence, machine tools, auto/EV, and green energy sectors to discuss sector growth and government support measures.
The meetings were attended by leading industrialists and their representatives, with some participating virtually.
Speaking on the occasion, the minister for Large and Medium Industries said Karnataka is at the forefront of the country’s aerospace and defence sectors.
He noted that Suzuki and Toyota plan to launch aerial taxi services in Japan by 2028, with Bengaluru-based Sasmos supplying electrical equipment for the project.
Industrialists suggested introducing similar “fly-taxi” services in Karnataka through an appropriate policy, which Patil said would be examined seriously.
The minister highlighted the need to establish testing centres and Common Facility Centres for the aerospace and defence industries and assured that these facilities would be provided.
Suggestions were also made to prepare a comprehensive roadmap for sector growth.
Karnataka has urged the Central Government to approve Defence Corridor projects in the Bengaluru North–Kolar–Chikkaballapur and Dharawada–Vijayapura–Belagavi regions.
Industrialists also suggested a corridor between Bengaluru and Mysuru, Patil said.
He said Karnataka aims to become a hub for defence electronics manufacturing, with plans to establish a 200-acre Defence Electronics Park and a 100-acre Avionics and Sensor Park.
These projects will be implemented once the Special Investment Region is operational, and land availability will not be an issue.
On the machine tools sector, Patil said the industry has recorded an annual turnover of Rs 36,500 crore and is witnessing steady growth.
Large-scale exhibitions have increased demand, and the state must strengthen its capabilities to develop control systems for heavy machinery. One testing unit is already operational in Bengaluru, with another planned for Tumakuru. Expansion of vocational training institutes in industrial areas is also underway.
In the Auto and EV sector, Vision Group members highlighted the need for a network of dry ports and more EV charging stations across the state.
Patil noted that the Tata Group is manufacturing EV buses in Dharawada for nationwide supply. Plans for mini excavator production and export facilitation were also discussed, along with the establishment of a testing facility for two-wheeler EVs.
For the Green Energy sector, the group emphasised the need for a suitable policy on battery-based energy storage and the establishment of data centres.
Patil assured that the government will seriously consider all suggestions and respond positively.
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