Jan 12 2018

Rupee higher as Euro gains after hawkish ECB meeting minutes

Financial Market Overview

12th January, 2018

Morning Coffee:-                                                                                  



  • The Indian rupee is trade higher against the dollar in early session, in line with most Asian currencies as weak U.S. producer prices data and gains in euro amid bets that the European Central Bank may trim its monetary policy stimulus. Pair USDINR now at 63.58 against 63.66 previous close.
  • India’s retail inflation and industrial output data are due today. A poll of economists expects retail inflation to gain pace to 5.10% in December, a 17-month high, from 4.88% in November.
  • Pair to tip in range between 63.50-63.75 today.

Indian Equities:-

  • Equity benchmarks opened at fresh record high on last day of the week, with the Nifty inching towards new milestone of 10,700, tracking record highs on Wall Street.
  • The 30-share BSE Sensex was up 112.01 points at 34,615.50 and the 50-share NSE Nifty rose 31.10 points to 10,682.30.

Global Markets:-

  • Asian markets are higher today . The Hang Seng is up 0.42% . The ASX200 rises 0.23% and Shanghai Composite is trading higher by 0.10%.
  • Wall Street closed at record highs on Thursday as rising oil prices lifted energy stocks and investors bet on a strong U.S. corporate earnings season. The Dow Jones Industrial Average rose 205.6 points, or 0.81 percent, to 25,574.73, the S&P 500 gained 19.33 points, or 0.70 percent, to 2,767.56 and the Nasdaq Composite added 58.21 points, or 0.81 percent, to 7,211.78.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.19%, while the DAX led the CAC 40 lower. They fell 0.59% and 0.29% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell over half-a-percent yesterday, after U.S. producer prices declined for the first time in nearly 1-1/2 years in December, and tracking gains in the euro.
  • The single currency advanced 0.7% in overnight trade after the minutes of European Central Bank’s December meeting showed the authority could revisit its previous stance in early 2018, implying that policymakers may soon start to trim its 2.55 trillion-euro bond purchase scheme.
  • S. producer prices fell 0.1% last month, its first drop since August 2016 and followed two straight monthly increases of 0.4%, data showed yesterday. In the 12 months through December, the PPI rose 2.6% after increasing 3.1% in November. A poll of economists expected the PPI to rise 0.2% in December and increasing 3.0% from a year ago.
  • China reported trade data for December with exports up 10.9%, compared to a gain of 9.1% seen, imports posted a 4.5% rise, compared to a 13.0% increase expected and the trade balance came in at $54.69 billion surplus, compared to surplus of $37 billion seen.