Oct 31 2017

Rupee opens marginally higher; BoJ holds steady as expected

Financial Market Overview

31st October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian Rupee opens marginally higher at 64.83 against the dollar, Asian peers, tracking the greenback’s overnight decline after the U.S. President Donald Trump’s previous campaign manager was charged with money laundering. Investors were also cautious ahead of the Federal Reserve’s two-day policy meeting that starts later today and imminent selection of the head at the U.S. central bank. Pair USDINR now at 64.79 against 64.85 previous close.
  • Pair to tip in range between today 64.74-64.95.

Indian Equities:-

  • Equity benchmarks opened flat with a negative bias, led by some profit booking as investors looked for more earnings for cues.
  • The 30-share BSE Sensex was down 33.60 points at 33,232.56 and the 50-share NSE Nifty fell 11.50 points to 10,352.20.

Global Markets:-

  • Asian markets are lower today. The Nikkei 225 is off 0.36% while the Hang Seng is down 0.11%. The Shanghai Composite is down 0.25% and Australian ASX200 is trading lower by 0.04%.
  • S. stocks were lower at the close on Monday, as losses in the Telecoms, Healthcare and Consumer Goods sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.36%, while the S&P 500 index lost 0.32%, and the NASDAQ Composite index fell 0.03%.
  • European markets finished mixed as of the most recent closing prices on Monday. The DAX gained 0.09%, while London’s FTSE 100 was off 0.23%. Shares in France were unchanged with the CAC 40 at 5,493.63.
  • The Bank of Japan held its asset purchases at ¥80 trillion annually as expected, with the short-term interest rate maintained at 0.1%. The BoJ also kept its core inflation forecast at 1.8% for FY2019/20, unchanged from July as it reiterated its view on the economy that risks are balanced.
  • Data today showed the official China Purchasing Managers’ Index (PMI) declined to 51.6 this month, below expectations and down against 52.4 in September, which was the strongest in over five years. Official non-manufacturing PMI slipped to 54.3 this month from September’s 55.4 that was the highest since May 2014, separate data showed.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell 0.38% overnight, after investigators probing Russian involvement in the 2016 presidential election charged Trump’s earlier campaign manager Paul Manafort and another assistant, Rick Gates, with money laundering yesterday. Meanwhile, media reports that Trump could be leaning towards nominating Fed Governor Jerome Powell as the next at the U.S. central bank continued to weigh on the greenback. Powell is viewed as being more dovish on monetary policy compared to other candidates in running for the position, such as Stanford University economist John Taylor.