May 03 2018

Rupee higher as Fed signals no rush in future rate hikes

Financial Market Overview

03rd May, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee higher after Fed signals it’s in no rush to raise rates despite inflation overshoot. Pair USDINR now at 66.55 against previous close of 66.66.
  • Pair to tip in range between 66.50-66.70.

Indian Equities:-

  • Benchmark indices opened flat amid weak global cues on Thursday as investors await corporate earnings and Karnataka elections that is scheduled to be held next week.
  • The 30-share BSE Sensex was down 4.36 points at 35,172.06 and the 50-share NSE Nifty fell 6.10 points to 10,711.90.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is off 1.65%, the Shanghai Composite is down 0.16% while the Australian ASX200 is trading higher by 0.87%.
  • European markets finished broadly higher yesterday with shares in Germany leading the region. The DAX is up 1.51% while London’s FTSE 100 is up 0.30% and France’s CAC 40 is up 0.16%.
  • US. stocks were lower at the close on Wednesday, as losses in the Telecoms, Healthcare and Consumer Goods sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.72%, while the S&P 500 index lost 0.72%, and the NASDAQ Composite index fell 0.42%.
  • Overnight it was a choppy session for the dollar index, as well as the U.S. bond and equity markets following the Fed policy outcome. The main talking point from the Fed decision, in which interest rates were left unchanged as expected, was the authority’s view on inflation. While the U.S. central bank said inflation had “moved close” to its target, it signaled a more “symmetric” inflation target which suggested that the Fed may tolerate inflation to exceed its target without raising interest rates too quickly.
  • Data released by a payrolls processor yesterday showed U.S. private-sector employers hired 204,000 workers in April, slightly more than the 200,000 economists surveyed had expected. The more comprehensive and closely followed non-farm payrolls data is due tomorrow.