Feb 27 2018

Rupee almost flat ahead of Powell testimony

Financial Market Overview

27th February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee little changed as month-end demand from importers offsets dollar weakness ahead of Jerome Powell’s first congressional testimony. Pair USDINR now at 64.77, off earlier highs of 64.83, and against 64.79 previous close.
  • Reserve Bank of India said late Monday that Indian and foreign portfolio investors can now take short or long positions in foreign exchange-traded currency derivatives, or ETCD, up to a single limit of $100 million for all rupee currency pairs without establishing existence of underlying exposure.
  • Pair to tip in range between 64.70-64.90.

Indian Equities:-

  • Equity benchmarks began the day on a positive note, with the Nifty reclaiming 10,600-mark.
  • The Sensex is up 77.14 points or 0.22% at 34522.89, and the Nifty up 22.60 points or 0.21% at 10605.20. The market breadth was positive as 395 shares advanced, against a decline of 174 shares, while 88 shares are unchanged.

Global Markets:-

  • Asian Shares are mixed today, the Shanghai Composite is down 0.91% while the Australian ASX200 is trading higher by 0.47% and the Hong Kong’s Hang Seng gains 0.09%.
  • European markets finished higher today with shares in London leading the region. The FTSE 100 is up 0.62% while France’s CAC 40 is up 0.51% and Germany’s DAX is up 0.35%.
  • US. stocks rose to more than three-week highs on Monday. The Dow Jones Industrial Average rose 399.01 points, or 1.58 percent, to 25,709, the S&P 500 gained 32.3 points, or 1.18 percent, to 2,779.6 and the Nasdaq Composite added 84.07 points, or 1.15 percent, to 7,421.46.
  • The dollar index edged lower in early Asia trading and the U.S. currency was weaker against most regional peers as markets awaited Powell’s first congressional testimony later today. His testimony comes in the wake of concerns that higher inflation could prompt the Fed to increase rates more quickly than what is being currently expected. With next month’s rate hike more or less a certainty, the key question for investors is whether they see two or three additional rate increases thereafter.
  • The U.S Commerce Department said new home sales dropped 7.8 percent to a seasonally adjusted annual rate of 593,000 units last month, the lowest level since August 2017. Economists polled had forecast new home sales, which account for nearly 10 percent of the housing market, rising to a pace of 645,000 units last month.
  • Overnight, the Euro rose by 0.2% to 1.2316 against the dollar. The European Central Bank president, speaking before the European Parliament yesterday, said that growth in the euro-zone was stronger than previously expected and inflation had yet to show more convincing signs of a sustained upward adjustment. EUR/USD was last trading at 1.2325.