Rising fuel prices crowding out discretionary household spending: SBI Research
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Synopsis
In aggregate terms, family health expenditure may increase by as much as Rs 66,000 crore, or 11% of their consumption expenditure, this year from FY20. Consumers will feel the double pain of rising health expenditure and lower incomes in this financial year as the second wave of Covid-19 spreads across India, SBI Research said in a report.
Expenditure on oil in December resulted in SBI Research’s estimates of headline inflation coming in at 5.35% for April, about 60 basis points higher than the CSO estimate.
Rising fuel prices have crowded out discretionary household spending on items like health, grocery and utility services,
by Tyler Durden
Tuesday, May 11, 2021 - 07:48 AM
Yesterday was bad, but not too bad, and we titled our morning market wrap Futures Flat As Soaring Commodities Depress Tech Stocks. 24 hours later it s much worse, as the rout that hammered US tech stocks on surging inflation fears (see This Is Not Transitory : Hyperinflation Fears Are Soaring Across America ) has now gone global, with markets in Asia and Europe hammered and S&P futures sliding 0.8%, while Nasdaq futures tumbled by another 1.3% after Monday s 2.6% rout. Treasuries were steady ahead of today s 3Y auction while the dollar erased its gains and dropped to session lows.
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– see disclaimer below - FCA looks to scrap MiFID research rules on small-caps in UK competitiveness drive (Investment Week)
Canyon Resources (ASX:CAY) – Minim Martap bauxite project mineral resource upgrade
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Marvel Gold (ASX:MVL) – Chilalo Graphite Project spin out
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Metal Tiger (AIM:MTR) – Drilling Commenced at KML copper project
Serabi Gold (AIM:SRB) – Drilling confirms lateral and depth extensions to mineralisation at Palito
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Yen rises after strong Household Spending
May 11, 2021SharePrint
The Japanese yen has posted slight gains on Tuesday. In North American trade, USD/JPY is trading at 108.63, down 0.16%.
Consumer spending jumps
There was positive news as Japanese Household Spending outperformed in March, with a gain of 6.2%, year-on-year. This easily beat the estimate of 1.4% and was the biggest gain since September 2019. The month-on-month numbers were also strong, as the gain of 7.2% crushed the estimate of 2.1%.
Despite these encouraging numbers, economic activity remains hampered by health restrictions due to Covid. A lockdown in April resulted in department stores being closed and limited travel, so Household Spending could well show a downturn in the April data.
May 11, 2021 15:26 GMTFXStreet News
EUR/JPY’s daily upside falters near the 132.50 level.
Risk aversion props up the demand for the Japanese yen.
Volatility tracked by the VIX index climbs to 2-day highs.
Following a move to the 132.50 region during early trade,
EUR/JPY has come under some moderate selling pressure and now returns to the sub-132.00 zne.
EUR/JPY gives away gains on risk aversion
Sellers appear to have returned to EUR/JPY, dragging it to the 132.00 area on the back of the pick-up in the risk aversion mood, which in turn gives extra legs to the buying pressure in the Japanese safe haven.