Oct 26 2017

Rupee higher on broad Dollar weakness; ECB meet eyed

Financial Market Overview

26th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher against the dollar in early trade, tracking most Asian peers, as the greenback slipped overnight on profit-taking despite strong economic data while the euro was stronger ahead of the European Central Bank meet today. Pair USDINR Now at 64.75 against 64.89 previous close.
  • Pair to tip in range between today 64.68-64.90.

Indian Equities:-

  • Equity benchmarks started off the trade on a flat note Thursday, ahead of expiry of October futures & options contracts later today.
  • The 30-share BSE Sensex was down 47.50 points at 32995.00 and the 50-share NSE Nifty fell 16 points to 10,279.40.
  • About 594 shares advanced against 436 declining shares on the BSE.

Global Markets:-

  • Asian markets are mixed today Japanese and China shares show gains. The Nikkei 225 is up 0.16% while the Shanghai Composite is up 0.43%. The Australian ASX200 is down 0.10% and Hang Seng is trading lower by 0.08%.
  • S. stocks were lower at the close on Wednesday, as losses in the Telecoms, Oil & Gas and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.48%, while the S&P 500 index declined 0.47%, and the NASDAQ Composite index lost 0.52%.
  • European markets finished broadly lower yesterday with shares in London leading the region. The FTSE 100 is down 1.05% while Germany’s DAX is off 0.46% and France’s CAC 40 is lower by 0.37%.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell 0.06% overnight and was last down 0.2%, as a slide in the benchmark U.S. Treasury yield caused profit booking in the greenback.  Strong economic data did little to underpin the dollar. Data yesterday showed orders for durable goods rose 2.2% in September, well beyond expectations while new home sales for last month rose at an annual pace of 667,000 units, the highest since October 2007.
  • The dollar recently gained significantly amid expectations of U.S tax reforms and speculation over likely appointment of Stanford University economist John Taylor, seen even more hawkish than Federal Reserve chair Janet Yellen, as the next head of the central bank.
  • Meanwhile, the euro was trading up 0.13% against the greenback ahead of the European Central Bank’s policy meeting later today. Given that Euro Zone economic recovery is underway, market participants expect the central bank to announce a roll back on stimulus programme though it could happen in phases given low inflation still remains a concern.