Nov 22 2017

Rupee higher as US. yields fall ahead of Fed minutes

Financial Market Overview

22nd November, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens higher against the dollar at 64.79, in line with most Asian currencies, as U.S. treasury yields fell ahead of the release of the Federal Reserve’s latest policy meeting minutes later today, hurting greenback demand. Pair USDINR now at 64.78, against 64.8850 previous close.
  • Pair to tip in range between today 64.70-64.

Indian Equities:-

  • Equity benchmarks started off trade on a positive note, with the Nifty reclaiming 10,350 level, tracking positive lead from Asian peers.
  • The 30-share BSE Sensex was up 95.75 points at 33,574.10 and the 50-share NSE Nifty gained 29.80 points at 10,356.70.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show major gains. The Nikkei 225 is up 0.78% while the Hang Seng is up 0.84%. The Shanghai Composite gains 0.50% and ASX200 advances 0.56%.
  • European markets finished higher yesterday with shares in Germany leading the region. The DAX is up 0.83% while France’s CAC 40 is up 0.48% and London’s FTSE 100 is up 0.30%.
  • S. stocks jumped on Tuesday, pushing all three major indexes to record closing highs, led by gains in this year’s top-performing technology sector. The Dow Jones Industrial Average rose 160.5 points, or 0.69 percent, to 23,590.83, the S&P 500 gained 16.89 points, or 0.65 percent, to 2,599.03 and the Nasdaq Composite added 71.76 points, or 1.06 percent, to 6,862.48.
  • Yellen said yesterday the U.S. central bank is “reasonably close” to its goals and the authority should keep increasing interest rates in the world’s largest economy gradually in order to avoid letting inflation slide below target for too long and pushing unemployment down too far. Yellen, whose term ends in February, will be succeeded by President Trump-nominated Jerome Powell, after confirmation from the Senate.
  • Overnight, the dollar turned negative on Tuesday as upbeat housing sector data failed to offset concerns over the long-term growth story of the US economy amid a flattening yield curve. The Commerce Department said existing home sales increased 2% in October from the previous month to a seasonally adjusted annual rate of 548 million units. Economists were expecting a 0.7% rise to 5.42 million homes.
  • Investors now await the release of the Fed’s latest meeting minutes. Investors await to see if minutes of the Oct. 31 – Nov. 1 meeting, where the authority had kept interest rates unchanged, can provide cues on possibilities of a rate hike in the next review, due on Dec. 12 and Dec. 13.