Business news live: Oil prices rise as tight supply, vaccinations offset virus concerns


12:25 P.M.

South Korea’s second-quarter GDP growth hits decade high

South Korea’s economy expanded at the fastest annual pace in a decade in the second quarter as the country’s private consumption picked up.

South Korea’s gross domestic product (GDP) grew 0.7% in the second quarter, after rising 1.7% three months earlier, according to data from the Bank of Korea. It matched the 0.7% growth tipped in a survey, Reuters reported.

The economy surged 5.9% year-over-year, the fastest growth in a decade, in part because of the low base effect of last year but also driven by strong exports and imports, the report noted.

According to economists, South Korea’s pace of growth could slow in the third quarter as the government has introduced its toughest COVID-19 restrictions yet to check the worst outbreak in the country, the report added.

11:40 A.M.

Oil prices rise as tight supply, vaccinations offset virus concerns

Oil prices rose on Tuesday as investors bet on tight supply and rising vaccination rates to help outweigh any demand impact as result of rising COVID-19 cases across the globe.

Brent crude futures scaled 34 cents, or 0.46%, to $74.84 a barrel at 0508 GMT (10:38 A.M. IST), while U.S. West Texas Intermediate crude futures climbed 20 cents, or 0.28%, to $72.11 a barrel, Reuters reported.

The Benchmark prices increased even after the U.S. issued travel warnings to Spain and Portugal due to rising COVID-19 cases, the report noted.

11:00 A.M.

Tesla posts record profit in second quarter

Electric Vehicle (EV) maker Tesla reported its second-quarter earnings on Tuesday with profits higher than expected as a result of higher sales of vehicles like the Model 3 and Y, and cost reduction.

Tesla reported revenue of $11.96 billion in the second quarter of 2021 with a growth of 98% year-on-year. Analysts had expected revenue of about $11.3 billion, according to a Reuters report. Tesla posted a profit of $1.45 per share, surpassing analyst expectations for a profit of 98% per share, the report noted.

Tesla delivered 2,01,250 vehicles, including 1,99,360 Model 3 and Model Y’s.

10:30 A.M.

Rupee opens slightly higher

Rupee opened at 74.36 against dollar on Tuesday, slightly higher than its Monday closing of 74.42.

According to forex traders, the rupee is trading in a narrow range as investors await signs from U.S. Federal Reserve’s policy meeting, which will conclude on Wednesday, PTI reported.

9:50 A.M.

Auto parts sector likely to grow 20-23%: ICRA

The Indian auto components industry is expected to witness a 20-23% growth in revenues in the current financial year on the back of strong demand in domestic as well as global markets, aided by the low base, ratings agency ICRA said.

The agency noted that the industry bounced back ‘handsomely’ during the second half of last fiscal (FY21), with many auto components suppliers registering record revenue and profits during the fourth quarter. Exports, which account for 29% of the industry’s turnover, also witnessed healthy recovery, supported by strong traction in the key markets of the U.S. and Europe, it said.

9:30 A.M.

Benchmark Indian indices open higher

Indian indices opened higher on Tuesday. BSE Sensex opened at 52,995.72, up 143.45 points or 0.27%, while Nifty opened at 15,860.50, up 36.05 points or 0.23%.

9:20 A.M.

Earnings announcements expected today

As the earnings season progresses, several companies are expected to release their earnings report on Tuesday, for the June ending quarter, including Canara Bank, Dr Reddy’s Laboratories, IIFL Finance, IndusInd Bank, InterGlobe Aviation, Lux Industries, Mahindra Logistics, Ramco Cements, Shemaroo Entertainment, and UCO Bank.

On Monday, firms such as Tata Motors, L&T, and Axis Bank announced their first quarter earnings.

9:10 A.M.

Major U.S. indices close at new record highs

The three major U.S. indices closed at new record highs on Monday as investors were optimistic about the upcoming earnings announcements from major U. S. firms, including Apple, Microsoft, Amazon, and Alphabet.

The S&P 500 closed at 4,422.30, up 10.51 points or 0.24%, the Dow Jones Industrial Average gained 82.76 points or 0.24% to close at 35,144.31, and the Nasdaq Composite closed marginally higher at 14,840.71, up 3.72 or 0.03%.

9:00 A.M.

Most Asian stock indices open in green, rise cautiously

Major Asian stock indices opened in green on Tuesday, except Hang Seng. Japan’s Nikkei opened at 27,911.93, up 78.64 points, and Topix at 1,934.18, up 8.56 points, while South Korea’s Kospi opened at 3,244.43, up 19.48 points.      

Hong Kong’s Hang Seng, opened at 26,011.51, down 180.81 points after closing at 26,192.32 on Monday. The stock index took a hit on Monday as Chinese technology and education stocks plunged amid regulatory fears.

Traders in the Asian equity market would keep an eye on the earnings announcements from major U. S. firms as well as the U.S. Federal Reserve’s policy meeting this week.

On Monday, benchmark Indian indices plunged. The 30-share BSE index ended 123.53 points or 0.23% lower at 52,852.27, while the broader NSE Nifty slipped 31.60 points or 0.20% to 15,824.45.

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