Jun 18 2018

Markets sideways after a stormy week

Morning Coffee



  • Indian rupee has opened at 68.16 from Friday’s close of 68.01 against the greenback.
  • India’s trade deficit widened to a four-month high of $14.6 billion in May, from $13.7 billion in April and higher than the $13.8 billion in the corresponding month last year.
  • The Dollar index crept up to 94.882, 0.1 percent higher than previous close.
  • We expect the pair to tip in range between 68.00-68.60 today.

Indian Equities:-

  • Shares have begun the week on a flat note. The Sensex is up 21.03 points or 0.04% at 35,643.70 and the Nifty up 1.70 points or 0.01% at 10819.20.
  • India has imposed duties on 30 US products, as it stroke back against Washington’s move to impose higher duties on Indian steel and aluminium exports. The revised tariffs are effective from Jun 21.

Global Markets:-

  • In Asian markets, the Hong Kong and China markets are closed today, while the Japan’s Nikkei is down 0.83 percent at 22,622.68
  • European markets finished broadly lower on Friday with shares in London leading the region. The FTSE 100 was down 1.70% while Germany’s DAX was off 0.74% and France’s CAC 40 closed  lower by 0.48%
  • As the US China trade war intensified, the US stock indexes closed lower on Friday. The Dow Jones Industrial Average fell 85.83 points, or 0.34 percent lower to 25,090.48, the Nasdaq Composite shed 14.66 points, or 0.19 percent down to 7,746.38 and the S&P 500 was lower by 2.83 points, or 0.10 percent, to 2,779.66.
  •  A number of speeches by ECB chief Draghi scheduled through the week will be followed in the wake of last week’s dovish press conference. Euro is currently at 1.1592 against the dollar.
  • The brent oil fell to $72.70 per barrel and focus will shift to June 22, OPEC –Russia meeting where they are expected to agree to increase production by 1m bpd.
  • Reserve Bank of Australia minutes from June’s meeting to give further direction to the Aussie Dollar which is now trading at $0.7442
  • Japanese Yen is at 110.50 on lower Trade balance for May at a deficit of 578.3 billion yen, a much steeper slide than expected deficit of 235 billion yen. The stronger than expected export data was overshadowed by worries over growing protectionism.
  • Economic Data watch – US May Building permit and housing starts on Tuesday, existing home sales and crude oil inventories on Wednesday but more importantly Bank of England’s monetary policy meeting is scheduled for Thursday, June 21.