Jul 12 2018

Rupee higher as crude oil collapsed the most in 2 years

Financial Market Overview

12th July, 2018

Morning Coffee:-                                                                                  



  • Rupee opens higher after Brent crude suffers biggest decline since February 2016. Pair USDINR now at 68.63 against 68.77 previous close.
  • We expect the pair to tip in range between 68.56-68.80 today.

Indian Equities:-

  • A positive start to the Indian equity markets and the Nifty has managed to test 11,000 mark in the opening trades. It has achieved the its feat for the first time since February 1. The Sensex is at all-time high mark and is up over 180 points .
  • The Sensex is up 187.13 points or 0.52% at 36,453.06, while the Nifty is up 65.40 points or 0.60% at 11,013.70. The market breadth is positive as 502 shares advanced, against a decline of 139 shares, whereas 41 shares are unchanged.

Global Markets:-

  • Asian markets are higher today. The Shanghai Composite gains 1.89%, the Hong Kong’s Hang Seng is up 0.70% and the Australian’s ASX200 is trading lower by 0.88%.
  • European markets finished sharply lower on Wednesday with shares in Germany leading the region. The DAX closed down 1.53% while France’s CAC 40 was off 1.48% and London’s FTSE 100 was lower by 1.30%.
  • US. stocks fell on Wednesday, breaking a four-session streak of gains after Washington’s threat to impose tariffs on an additional $200 billion worth of Chinese goods fanned trade war fears, while a sharp drop in oil prices hit energy shares. The Dow Jones Industrial Average fell 219.21 points, or 0.88 percent, to 24,700.45, the S&P 500 lost 19.81 points, or 0.71 percent, to 2,774.03 and the Nasdaq Composite dropped 42.59 points, or 0.55 percent, to 7,716.61.
  • Brent crude tumbled 7% on Wednesday to lowest in almost three weeks amid reports about resumption of Libyan crude oil production, possible waivers for US sanctions on Iranian oil and renewed trade war worries; crude now up 1.7% at $74.62 in early Asia trading today.
  • The dollar index rose by the most in two weeks on Wednesday after the Japanese yen fell to 112 against the U.S. currency. The 3.4% rise in June U.S. producer prices, up from 3.1% in the previous month and higher than the 3.2% expected by economists polled by Reuters, boosted the dollar. The more closely watched US consumer inflation data is due later today.
  • There was little respite for the yuan from yesterday’s selloff after President Donald Trump threatened more action on Chinese imports. Other regional currencies followed the yuan lower. The Korean won dropped 0.7% and the Indonesian rupiah slipped 0.4%.