Apr 04 2018

Rupee higher as US-China trade tensions shoot up

Financial Market Overview

04th April, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee higher after US reveals tariff details on $50 billion of China imports. Pair USDINR now at 64.92 against 65.01 previous close.
  • India’s Monetary Policy Committee’s two-day meeting gets underway today. At the conclusion of the meeting, the panel is expected to leave its benchmark rate unchanged and will likely stick to its neutral policy stance.
  • Pair to tip in range between 64.80-65.05.

Indian Equities:-

  • Benchmark indices opened mildly higher on Wednesday, with the Sensex rising 92.32 points to 33,462.95 and the Nifty gaining 11.80 points at 10,256.80

Global Markets:-

  • Asian markets are mixed today. The Shanghai Composite is up 0.80% while the Hong Kong’s Hang Seng lost 0.26% and the Australian ASX200 is trading mildly lower by 0.06%.
  • European markets finished lower yesterday with shares in Germany leading the region. The DAX is down 0.78% while London’s FTSE 100 is off 0.37% and France’s CAC 40 is lower by 0.29%.
  • The three major U.S. stock indexes ended higher after a choppy session on Tuesday as investors looked forward to earnings season while the S&P 500 pushed above a key support level and Amazon.com AMZN.O shares jumped on hopes that criticism from President Donald Trump would not translate to policy changes. The Dow Jones Industrial Average rose 389.17 points, or 1.65 percent, to 24,033.36, the S&P 500 gained 32.57 points, or 1.26 percent, to 2,614.45 and the Nasdaq Composite added 71.16 points, or 1.04 percent, to 6,941.28.
  • The Donald Trump administration on Tuesday released a list of 1,300 Chinese products on which it is proposing a tariff of 25% for alleged intellectual property infringement. The latest move comes a day after China’s import tariffs on $3 billion worth of U.S. imports came into effect, and risks a further escalation of tensions between the two countries. The proposed 25% U.S. tariffs do not come into effect immediately and will be subject to a public comment period.
  • China’s services sector growth eased to a four-month low in March. The Caixin/Markit services purchasing managers’ index (PMI) fell to 52.3 in March, from February’s 54.2, the weakest since November. However, it still remained above the 50-mark that separates growth from contraction.
  • The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) fell to 50.9 in March on a seasonally adjusted basis from 51.7 in February. It was the lowest reading since October 2016.