May 11 2018

Rupee higher as downbeat US inflation dampens the bets of faster rate hikes

Financial Market Overview

11th May, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens higher at 67.15 against the U.S. currency after lower-than-expected U.S. consumer inflation pulled back bets of faster rate hikes, weighing on the dollar. Pair USDINR now at 67.16, against 67.31 previous close.
  • Pair to tip in range between 67.10-67.31.

Indian Equities:-

  • Equity benchmarks have begun the day on the right foot, with the Sensex gaining over 100 points, while the Nifty clocked 10,750 during the morning trade.
  • The Sensex is up 132.32 points at 35378.59, while the Nifty is up 43.30 points at 10759.80. The market breadth is positive as 518 shares advanced, against a decline of 347 shares declined, while 63 shares have remained unchanged.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is up 1.32%, the Australian’s ASX200 gains 0.17% while the Shanghai Composite is trading lower by 0.07%.
  • European markets finished higher yesterday with shares in Germany leading the region. The DAX is up 0.62% while London’s FTSE 100 is up 0.50% and France’s CAC 40 is up 0.20%.
  • Wall Street jumped on Thursday, and Apple Inc inched closer to a $1 trillion stock market value, as tepid inflation data eased worries of faster interest rate hikes this year. The Dow Jones Industrial Average rose 196.75 points, or 0.8 percent, to 24,739.29, the S&P 500 gained 25.25 points, or 0.94 percent, to 2,723.04, and the Nasdaq Composite added 65.07 points, or 0.89 percent, to 7,404.98.
  • The dollar index dropped 0.4% overnight, easing from its more-than-four-month high hit earlier this week, weighed by subdued readings on headline and core U.S. inflation.
  • The consumer price index in the world’s largest economy rose by 0.2% month-on-month in April, less than the 0.3% expected by economists. Core inflation, which strips out the volatile food and energy components, also came below forecasts at 0.1% on-month versus 0.2% expected. Inflation is among the most followed data points to assess whether the Federal Reserve hikes rates two or three more times this year.