Oct 17 2017

Rupee edges lower in early trades as speculation on FED head lifts Dollar

Financial Market Overview

17th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edges lower against the dollar in early trade, as higher U.S. Treasury yields amid reports President Donald Trump prefers a more hawkish candidate to lead the Federal Reserve boosted the greenback; pair USDINR now at 64.88 against 64.74 previous close.
  • Pair to tip in range between today 64.70-600.

Indian Equities:-

  • Equity benchmarks opened mildly lower on profit booking Tuesday after the rally in three consecutive sessions.
  • The 30-share BSE Sensex was down 33.86 points at 32,599.78 and the 50-share NSE Nifty fell 15.10 points to 10,215.80.
  • Axis Bank, Reliance Industries, GAIL, Bajaj Auto, Yes Bank, IOC and Bharti Airtel were early gainers while Wipro, Bajaj Finance and BPCL were losers. DCB Bank, JM Financial and Colgate were down 1.5-2.5 percent.

Global Markets:-

  • Asian markets are higher today. The Nikkei 225 is up 0.03% while the Hang Seng is up 0.19%. The Shanghai Composite is trading up by 0.07% and Australian ASX200 rises 0.76%.
  • S. stocks were higher at the close on Monday, as gains in the Telecoms, Technology and Financials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.37% to hit a new all time high, while the S&P 500 index climbed 0.18%, and the NASDAQ Composite index gained 0.28%.
  • European markets finished mixed as of the most recent closing prices on Monday. The CAC 40 gained 0.21% and the DAX rose 0.09%. The FTSE 100 lost 0.11%.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.24% higher yesterday, as U.S. Treasury Yields spiked amid reports that Trump met Stanford University economist John Taylor to discuss the job of Federal Reserve Chair in his attempt to succeed current chair Janet Yellen next year. Taylor, seen as even more hawkish than Yellen, had made an impression on Trump after an hour-long interview at the White House last week, Bloomberg reported citing people familiar with the matter.
  • Crude oil prices continued to rise after Iraqi forces seized the oil-rich Kirkuk city from largely autonomous Kurdish fighters increasing concerns over oil supply. The benchmark Brent crude oil was last trading steady at $57.81 per barrel after adding 1.6% rise overnight.