Jun 07 2018

Rupee lower as hawkish ECB talks send US yields up

Financial Market Overview

07th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee lower as worries over ECB ending stimulus sends US yields up; pair USDINR now at 67.06 against 66.92 previous close.
  • We expect the pair to tip in range between 66.90-67.20 today.

Indian Equities:-

  • It has been a good start to the market, with the Sensex rising over 150 points in the opening tick, while the Nifty opened above 10,700-mark.
  • The Sensex is up 155.26 points or 0.44% at 35334.14, while the Nifty is up 46.20 points or 0.43% at 10730.90. The market breadth is positive as 256 shares have advanced, against a decline of 72 shares, while 38 shares are unchanged.

Global Markets:-

  • Asian markets are higher today. The Australian’s ASX200 is up 0.68%, the Hong Kong’s Heng Seng gains 0.49% and the Shanghai Composite is trading higher by 0.17%.
  • European markets finished mixed as of the most recent closing prices on Wednesday. The DAX gained 0.34% and the FTSE 100 rose 0.33%. The CAC 40 lost 0.06%.
  • Wall Street indexes rallied on Wednesday with help from financial stocks as investors eyed strong economic data and trade war fears took a back seat while Nasdaq registered its third straight record closing high. The Dow Jones Industrial Average rose 346.41 points, or 1.4 percent, to 25,146.39, the S&P 500 gained 23.54 points, or 0.86 percent, to 2,772.34 and the Nasdaq Composite added 51.38 points, or 0.67 percent, to 7,689.24.
  • The U.S. 10-year bond yield was back to near the closely watched 3% level and Germany’s borrowing cost of the same maturity surged by 10 basis points on Wednesday following remarks by ECB chief economist that the central bank will debate next week whether to end its bond purchases later this year. Peter Praet commented that next week’s ECB meeting will be pivotal in deciding when the central bank ends its bond buying amid signs that inflation is picking up.
  • US. worker productivity increased less than initially thought in the first quarter. The Labor Department said on Wednesday nonfarm productivity, which measures hourly output per worker, rose at a 0.4 percent annualized rate in the January-March quarter, instead of the 0.7 percent pace it reported last month.