Mar 23 2018

Rupee lower as equities tumble on trade war fears

Financial Market Overview

23rd March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian Rupee opens lower against the dollar at 65.18 as equity markets plunged after the U.S. unveiled tariffs against China, intensifying the already-high trade tensions between the world’s two largest economies. Pair USDINR now at 65.17 against 65.10 previous close.
  • Pair to tip in range between 65.05-65.25.

Indian Equities:-

  • Benchmark indices opened sharply lower on Friday, tracking steep fall in global peers on US-China trade war worries.
  • The Sensex fell more than 450 points and the Nifty breached 10,000-mark for the first time in 2018. About 25 shares declined for every share rising on the NSE.
  • HCC, Union Bank, Reliance Communications, Bank of Baroda, PNB, Bank of India, Canara Bank, IVRCL, GMR Infrastructure, Nalco, JSPL and SAIL fell up to 7 percent.

Global Markets:-

  • Asian markets are sharply lower today. The Shanghai Composite is down 3.27%, Hong Kong’s Hang Seng fell 2.80% and the Australian ASX20 is trading lower by 2.05%.
  • European markets finished sharply lower yesterday with shares in Germany leading the region. The DAX is down 1.70% while France’s CAC 40 is off 1.38% and London’s FTSE 100 is lower by 1.23%.
  • S. stocks dropped on Thursday, with each of the major Wall Street indexes suffering its biggest one-day percentage drop in six weeks, on the heels of an action by President Donald Trump to impose tariffs on up to $60 billion of Chinese imports. The Dow Jones Industrial Average fell 723.45 points, or 2.93 percent, to 23,958.86, the S&P 500 lost 68.23 points, or 2.52 percent, to 2,643.7 and the Nasdaq Composite dropped 178.61 points, or 2.43 percent, to 7,166.68.
  • President Donald Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China for misappropriation of U.S. intellectual property. The memorandum provides for a consultation period of 30 days after the list of imports that are to be targeted is published. The move by the U.S. administration comes less than a month after Trump imposed tariffs on steel and aluminum products, increasing the odds of a trade war between the two major economies. In response, Chinese ambassador Cui Tiankai said Beijing would retaliate, prompting demand for safe havens. US 10-year Treasury yields falls to 2.80%, hovering near its lowest in a month. Dollar index down 0.3%, as USD/JPY falls below 105 handle.