Jun 26 2018

Blood on the stock street due to trade war

Financial Market Overview

June 26, 2018

Morning Coffee:-                                                                                  



  • Rupee opens at 68.13 against the dollar, almost same as Monday’s closing of 68.12
  • The dollar index against a basket of six major currencies stood little changed at 94.19 after dipping 0.1 percent overnight, when it fell for the fourth straight session, lowest in almost 2 weeks.
  • We expect the pair to tip in range between 67.90-68.30 today.

Indian Equities:-

  • Benchmark indices are lower at the opening taking cue from global indices. 30 share BSE Sensex losing over 35 points at 35,435, while the 50 share NSE Nifty is trading around 10,750 mark.
  • Nifty Bank index fell 117 points and Nifty IT index was up by 26 points.

Global Markets:-

  • Asian equities extended a decline in global markets as investors continued to worry about an escalating exchange of trade and investment restrictions, triggered by the Trump administration
  • Nikkei 225 fell 0.52% at 22,221, Hong Kong’s Hang Seng fell 0.59 percent to 28,784 while Australian stocks dropped 0.38 percent.
  • Chinese Yuan has fallen 0.3% to 6.5530 against the greenback.  It has lost more than 2% for the month.
  • England’s FTSE 100 fell 2.2% at 7,509, while Germany’s DAX closed at 12,270 a 2.46% down.
  • The single currency, Euro hovered around the 11 day high of 1.1713 against the sagging dollar. Cable hasn’t moved much from the previous close of $1.3279.
  • The US markets were down with Dow Jones Industrial Average lower by 328 points to close at 24,252.80 while NASDAQ was down 2.09% at 7,532.01, steepest fall in more than 2 months.
  • The 10-year Treasury yield premium over two-year notes compressed to a new decade-plus low. The decade note closed at 1-month low at 2.887%.
  • Oil prices have seesawed after OPEC and its allies on Friday agreed to increase global supplies modestly. It is trading at $74.75 per barrel.