Aug 03 2018

Indian Rupee turns lower tracking selloff in Chinese yuan

Financial Market Overview

03rd August, 2018

Morning Update:-                                                                                 

MARKETS AT Open:-

Rupee:-

  • The Indian rupee opened almost flat at 68.69 per dollar on Friday versus the dollar compared with its previous close of 70 yesterday. The single unit fell in the early trades to hit a low of 68.7650 following broad strength in the US dollar against its major crosses after the Federal Reserve held rates unchanged but hinted towards gradual rate hike in the coming months.  Chinese Yuan-led decline in regional currencies in the wake of continuing U.S.-China trade tensions.
  • We expect the pair to trade in the range between 68.65-68.85 today.

Indian Equities:-

  • After a weak two sessions, equity benchmarks on Friday morning have started the day on a good note. The Sensex is up 182.90 points or 0.49% at 37348.06, while the Nifty is up 60.40 points or 0.54% at 11305.10.
  • The market breadth is positive as 451 shares advanced, against a decline of 96 shares, while 41 shares are unchanged. All sectoral indices are trading in the green, with gains in pharma, metals, energy and auto names, while midcaps have seen a strong start as well. The Nifty Midcap index is up over 0.6 percent.

Global Markets:-

  • Asian markets are slightly trading positive today. The Australian’s ASX200 marginaly down.-0.03% while the Shanghai composite is trading lower by -0.1% and Hong Kong’s Hang Seng is trading with bearish hand -0.08% SGX has shown some positiveness by 0.32%.
  • European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX is down 1.50% while London’s FTSE 100 is off 1.01% and France’s CAC 40 is lower by 0.68%.
  • S. stocks closed with some positivness. Technology stocks pushed the S&P 500 and Nasdaq higher on Thursday, driven by Apple shares as the iPhone maker became the first publicly traded U.S. company worth a trillion dollars. Based on the latest available data, the Dow Jones Industrial Average fell 7.33 points, or 0.03 percent, to 25,326.49, the S&P 500 gained 13.91 points, or 0.49 percent, to 2,827.27 and the Nasdaq Composite added 95.40 points, or 1.24 percent, to 7,802.69.
  • The number of Americans filing for unemployment benefits rose less than expected last week, pointing to sustained strength in the labor market despite trade tensions. Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 218,000 for the week ended July 28, the Labor Department said on Thursday. Claims dropped to 208,000 during the week ended July 14, which was the lowest reading since December 1969. Economists polled had forecasted claims rising to 220,000 in the latest week.
  • The Bank of England pushed interest rates above their financial crisis lows on Thursday, but signaled it was in no hurry to raise them further as Britain heads for Brexit next year with no clear plan for leaving the European Union.
  • The BoE’s nine rate-setters unexpectedly voted unanimously to raise rates to 0.75 from 0.50 percent, the level at which they have spent most of the past decade, apart from a period after the 2016 Brexit vote when they were cut even lower.