Sep 18 2018

Rupee opened lower as Trump’s new tariffs on China

Financial Market Overview

18th September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened lower against the dollar, tracking a yuan-led decline in Asian currencies after U.S. President Donald Trump said he will impose fresh tariffs on about $200 billion of Chinese goods.
  • The rupee is opened at 72.55 versus the dollar compared with its previous close of 72.51. The main worry for the rupee from increasing trade tensions is an increase in China’s tolerance for further declines in the yuan
  • We expect the pair to trade in the range between 72.20 to 72.70

 

Indian Equities:-

  • The benchmark indices opened on flat note on Tuesday amid no major development in the global markets.
  • Pharma, metal, energy stocks are providing some support to the indices, while PSU banks are down 0.7 percent in the early trade.
  • The Sensex is down 22.96 points or 0.06% at 37562.55, and the Nifty down 1.90 points or 0.02% at 11375.90.

 

Global Markets:-

  • Asian markets are lower today as Japanese,Chinese and Hong Kong shares fall. The Nikkei 225 is off 1.07% while the Hang Seng is down 0.69%. The Shanghai Composite is off 0.08%.The Australian’s ASX200 is down today by -27 points and -0.44%.
  • European markets finished lower today with shares in Germany leading the region. The DAX is down 0.23% while France’s CAC 40 is off 0.07% and London’s FTSE 100 is lower by 0.03%.
  • U.S. stocks fell on Monday, led by declines in technology and consumer discretionary stocks, as investors looked to President Donald Trump’s announcement regarding tariffs on $200 billion of Chinese imports.
  • The Dow Jones Industrial Average fell 92.62 points, or 0.35 percent, to 26,062.05, the S&P 500 lost 16.17 points, or 0.56 percent, to 2,888.81 and the Nasdaq Composite dropped 114.25 points, or 1.43 percent, to 7,895.79.
  • Euro zone annual inflation slowed slightly to 2.0 percent in August, the EU’s statistics agency said on Monday, confirming its earlier estimate.
  • Eurostat also confirmed that inflation excluding volatile energy and unprocessed food prices, which the European Central Bank looks closely at in policy decisions, was 1.2 percent on the year. Inflation was 0.2 percent, while the figure excluding energy and food was 0.1 percent.
  • The data confirmed market expectations of a slight slowdown of headline inflation from 2.1 percent in July and were in line with Eurostat’s previous estimates released on Aug. 31. Inflation excluding energy, food, alcohol and tobacco, which many economists look at, was 1.0 percent on the year and 0.2 percent on the month.
  • The Empire State manufacturing index unexpectedly rose in September, to a reading of 19.00 from 25.60 in August, the New York Fed reported on Monday.