Most Asian stocks were trading lower on Monday morning after the Italian Prime Minister failed to secure votes on Italy's referendum on constitutional reforms. Indian indices were trading marginally higher with the BSE Sensex at 26,209.39 down 0.08% or 21.27 points. Market breadth was positive and out of a total of 2,147 shares traded on the BSE, 1,207 advanced while 841 declined and 99 remained unchanged. The Nifty 50 was at 8,084.30 down 0.03% or 2.50 points.
Indian government bonds were trading higher with the yields on 10-year government bonds at 6.19% in morning trades as against the previous close of 6.24%. The Indian rupee was trading weak against the US dollar at Rs 68.21 from its previous close of Rs 68.225. Last week the rupee firmed up 55 paise.
US equities ended higher on Friday but ended the week lower, the first weekly loss since Donald Trump was elected as the US President. European stocks ended lower over Italian referendum. Italian Prime Minister Matteo Renzi resigned Monday morning after suffering a heavy defeat in a referendum over his plan to reform the constitution. Mr Renzi said the reforms he proposed would have cut Italy's bureaucracy and made the country more competitive. But the referendum was widely seen as a chance to register discontent with the prime minister. Meanwhile, oil retreated from high as US producers continued to boost drilling after OPEC agreed to reduce output for the first time in eight years.
The Week Ahead
This week the European Central Bank will announce its monetary policy decision wherein the bank is also expected to discuss the future of its asset purchase program. The central banks of India, Australia, Canada and Poland will also announce their monetary policy action this week.
US Congress has to pass a vote on spending measures by December 9 this week in order to avoid a partial government shutdown. The Republicans are planning to push through a stopgap spending bill that would fund the government through next spring. This will give the President elect Donald Trump some time.
Italy will be in focus this week as the Italian Prime Minister Matteo Renzi lost the referendum he had called for to push through constitutional changes and resigned in early hours Monday morning.