Sep 10 2018

Indian rupee fall on upbeat U.S. average hourly earnings

Financial Market Overview

10th September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened lower below 72 against the dollar after average hourly earnings in the U.S. rose by the most since mid-2009.

    The rupee is opened at 72.18 versus the dollar versus its previous close of 71.73. This week, apart from developments on the U.S.-China trade after President Donald Trump’s latest rhetoric, rupee traders will be eyeing the retail inflation data due on Wednesday.

  • We expect the pair to trade in the range between 71.95 to 72.30

Indian Equities:-

  • It’s a red start to the truncated week, with the Sensex shedding over 100 points, while the Nifty fell below 11,600.
  • Tepid global market movements along with a weakness in the Indian currency are likely to have weighted on the market. The Indian currency opened at another record low of 72.18 per US dollar, continuing its bearish move in the past few sessions.
  • The Sensex is down 116.02 points or 0.30% at 38273.80, while the Nifty is lower by 25.90 points or 0.22% at 11563.20. The market breadth is narrow as 460 shares advanced, against a decline of 440 shares, while 65 shares were unchanged.

Global Markets:-

  • Asian markets are lower today as Chinese,Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.03% while the Hang Seng is down 0.93%. The Australian’s ASX200 is little positive today by 2 points and 0.04% .
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.16% and the DAX rose 0.04%. The FTSE 100 lost 0.56%.
  • Wall Street’s major indexes fell on Friday as U.S. President Donald Trump raised the possibility of additional tariffs on imports of Chinese goods and reports suggested that products from Apple Inc could be subjected to those levies.
  • The Dow Jones Industrial Average fell 79.33 points, or 0.31 percent, to 25,916.54, the S&P 500 lost 6.37 points, or 0.22 percent, to 2,871.68 and the Nasdaq Composite dropped 20.19 points, or 0.25 percent, to 7,902.54.
  • U.S. job growth accelerated in August and wages notched their largest annual increase in more than nine years, the clearest signs that the economy was so far weathering the Trump administration’s escalating trade war with China.
  • The Labor Department’s closely watched employment report published on Friday also showed slack in the jobs market was rapidly diminishing, with a broader measure of unemployment falling to a level not seen since 2001. The report cemented expectations for a third interest rate increase from the Federal Reserve this year when policymakers meet on Sept. 25-26.
  • Nonfarm payrolls surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labor Department said. There were also gains in transportation and healthcare employment.
  • Average hourly earnings increased 0.4 percent, or 10 cents in August after rising 0.3 percent in July. That raised the annual increase in wages to 2.9 percent in August, the largest gain since June 2009, from 2.7 percent in July.