Jul 31 2018

Indian rupee opened lower due to crude oil & Chinese yuan

Financial Market Overview

31 st July, 2018

Morning Coffee:-                                                                                 

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened marginally lower at 68.70 per dollar on Tuesday against previous close 68.67 after crude oil prices climbed to their highest in two weeks, eclipsing the dollar index’s decline. The volatility on the Chinese yuan, oil prices and the Federal Reserve interest rate outlook will be the key variable for the rupee.
  • We expect the pair to trade in the range between 68.55- 68.80 today.

Indian Equities:-

  • After closing at record highs in Monday’s trade the benchmarks indices opened lower on Tuesday, with the Nifty trading below 11,300 mark and Sensex below 37,400.
  • The Sensex is down 100.14 points at 37394.26, and the Nifty down 27.30 points at 11292.20. About 459 shares have advanced, 379 shares declined, and 65 shares are unchanged

Global Markets:-

  • Asian markets are trading mixed today. The Australian’s ASX200 gain.0.22% while the Shanghai composite is trading little positive by 0.2% and Hong Kong’s Hang Seng is trading down by -0.55%.
  • European markets finished mixed to lower as of the most recent closing prices. Shares in Germany fell as the DAX dropped 0.48%. The CAC 40 lost 0.37% while the FTSE 100 in London closed unchanged.
  • U.S. stock indexes closed lower on Monday, with the Nasdaq Composite posting its third consecutive loss of more than 1 percent for the first time in three years just days after hitting a record high.
  • Based on the latest available data, the Dow Jones Industrial Average fell 144.23 points, or 0.57 percent, to 25,306.83, the S&P 500 lost 16.21 points, or 0.58 percent, to 2,802.61 and the Nasdaq Composite dropped 107.42 points, or 1.39 percent, to 7,630.00.
  • Pending home sales index, which measures signed contracts for homes where transactions have not yet closed, increased 0.9% to a reading of 106.9 after falling by 0.5% in the previous month. Economists had forecast pending home sales rising just 0.4% last month. Despite last month’s increase, contract signings are still down 2.5% on an annual basis.
  • The dollar index fell to its lowest in almost three weeks yesterday. The Fed’s two-day meeting begins later today. The monetary authority is expected to leave interest rates unchanged and reiterate that it remained on course for raising the rates two more times this year.
  • Bond yields across the developed markets edged higher yesterday amid speculation that the BoJ may adjust its monetary stimulus program. The yen was hovering around the 111 against the dollar and Japan’s 10-year yield was last at 0.10%.Dollar index little changed at 94.38, after falling 0.4% in previous session.