Feb 02 2018

Rupee at 1-month low on rising US yields

Financial Market Overview

02nd February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee lower tracking dollar’s advance against most Asian currencies amid rising US yields. Pair USDINR now at 64.12, highest since Dec. 28, against 64.02 previous close.
  • Pair to tip in range between 64.00-64.27 today.

Indian Equities:-

  • Benchmark indices opened sharply lower as investors digested Union Budget 2018and focussed on more corporate earnings.
  • The 30-share BSE Sensex was down 270.47 points at 35,636.19 and the 50-share NSE Nifty fell 83.20 points to 10,933.70.
  • Axis Bank, Yes Bank, SBI, Indiabulls Housing Finance, Adani Ports, SBI, ICICI Bank, Kotak Mahindra Bank, Sun Pharma, Tata Steel and UPL were early losers. Hindalco, HCL Technologies, Bajaj Auto and ITC were early gainers.

Global Markets:-

  • Asian markets are mixed today ,the Honk Kong Hang Seng is up 0.13% while the Shanghai Composite fell by 1.15% and the ASX200 is trading higher by 0.45%.
  • European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX is down 1.41% while London’s FTSE 100 is off 0.57% and France’s CAC 40 is lower by 0.50%.
  • Wall Street stocks gave up early gains on Thursday as bond yields rose and technology stocks retreated ahead of a host of high-profile earnings. The Dow Jones Industrial Average rose 37.32 points, or 0.14 percent, to 26,186.71, the S&P 500 lost 1.83 points, or 0.06 percent, to 2,821.98 and the Nasdaq Composite dropped 25.62 points, or 0.35 percent, to 7,385.86.
  • US 10-year bond yields approach 2.8%, level last seen in April 2014, as Fed’s hawkish comments on inflation continues to unnerve markets. Dollar index little changed, after falling 0.5% overnight as taper expectations continue to buoy euro. US January non-farm payroll data due later today. A survey of economists estimates payrolls grew by 180,000 jobs in January following a 148,000 increase in December. The forecast for unemployment rate was unchanged at 17-year low of 4.1%.
  • The euro strengthened against the greenback, rising 0.7% yesterday after IHS Markit’s final manufacturing Purchasing Managers’ Index for the Eurozone for January showed a reading of 59.6, in line with an earlier preliminary reading but was below December reading of 60.6, which was the highest level since the survey began in June 1997. The data suggested a sustained rise in manufacturing activity, aiding bets that the European Central Bank is on track to normalise monetary policy.