Dec 04 2018

Rupee Little Lower On Mixed Regional Cues

Financial Market Overview

04th December, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened little lower against the dollar as investors await new triggers, especially the upcoming meeting of OPEC and its allies.
  • The rupee opened at 70.49 versus its previous close of 70.45. Following yesterday’s decline of more than a percent in the wake of short-dollar position paring and rally in crude oil, a “reset has been made” on the immediate uptrend for the rupee. Monetary Policy Committee decision, the OPEC’s meeting starting Dec. 6, and next week’s assembly election results, especially of Madhya Pradesh, may prove to be the new triggers for the rupee. Rupee traders are unlikely to make big bets ahead of the MPC policy decision, due tomorrow at 14.30 p.m. According to a poll of 70 economists.
  • We expect USD/INR to trade in a range between 70.25 – 70.65 today.

 Indian Equities:-

  • A day of consolidation for Indian markets. The S&P BSE Sensex which rallied by over 48 points 0.14% at 36290 in the opening trade while the Nifty50 opened little down just 2.45 points 0.02% opened at 10,881 today.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.69% while the Hang Seng is down 0.30%. The Shanghai Composite is trading little down by -0.06%. The Australian ASX 200 is down by 48 points or -0.83%.
  • European markets closed sharply higher today with shares in Germany leading the region. The DAX is up 1.85% while London’s FTSE 100 is up 1.18% and France’s CAC 40 is up 1.00%.
  • U.S. stocks leapt at open on Monday, driven by strong gains in trade-sensitive industrial and technology stocks after the United States and China agreed upon a temporary trade detente. The Dow Jones Industrial Average rose 241.11 points, or 0.94 percent, at the open to 25,779.57. The S&P 500 opened higher by 30.33 points, or 1.10 percent, at 2,790.50. The Nasdaq Composite gained 155.59 points, or 2.12 percent, to 7,486.13 at the opening bell.
  • The dollar index slipped on Tuesday, adding to yesterday’s trade ceasefire-triggered decline. Data released yesterday showed that the U.S. Manufacturing Index rose to 59.3 last month from 57.5 in October. The reading was better than the 57.6 expected.
  • OPEC and allies will gather on Dec. 6 to decide whether a cut in oil production is required following the near 30% decline in crude prices since early October.
  • Ten-year US yield was at 2.9516%, lowest since Sep. 13.
  • U.S. construction spending fell for a third straight month, government data showed on Monday, while private-sector figures showed an uptick in manufacturing order growth but offered a mixed view on overall factory activity.
  • The rate of growth in the economy’s manufacturing sector unexpectedly picked up in November, according to a report released on Monday. The Institute of Supply Management said its manufacturing purchasing managers’ index rose to 59.3 in November, from 57.7 the previous month.