Mar 15 2018

Rupee lower as trade war fears hurt risk appetite

Financial Market Overview

15th March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee fall against the dollar, tracking losses in most regional currencies amid worries that trade tensions between the U.S. and China could rise. Pair USDINR now at 64.94 against 64.82 at previous close.
  • On the local front, investors will eye India’s February trade data, likely due later today. In January, India’s trade deficit had shot up to a 56-month high of $16.3 billion.
  • Pair to tip in range between 64.82-65.05.

Indian Equities:-

  • Benchmark indices opened mildly lower, with the Nifty hovering around 10,400 levels, following negative lead from global peers.
  • The 30-share BSE Sensex was down 54.89 points at 33,780.85 and the 50-share NSE Nifty fell 11.60 points to 10,399.30.

Global Markets:-

  • Asian markets are mixed today. The Australian ASX200 is down 0.18%, Shanghai Composite fell by 0.02% while the Hong Kong’s Hang Seng is trading higher by 0.03%.
  • European markets finished mixed to lower as of the most recent closing prices. Shares in France fell as the CAC 40 dropped 0.18%. The FTSE 100 lost 0.09% while the DAX in Germany closed unchanged.
  • US. stocks fell on Wednesday after President Donald Trump sought to impose fresh tariffs on China, intensifying fears of a trade war that could raise costs and hurt overseas sales for U.S. companies. The Dow Jones Industrial Average fell 247.64 points, or 0.99 percent, to 24,759.39, the S&P 500 lost 15.69 points, or 0.57 percent, to 2,749.62 and the Nasdaq Composite dropped 14.20 points, or 0.19 percent, to 7,496.81.
  • White House spokeswoman said that President Donald Trump’s administration is pressing China to cut its trade surplus with U.S. by $100 billion. The comments came in clarification to Trump’s last week tweet in which he said that China had been asked to develop a plan to reduce its trade imbalance with the U.S. by $1 billion. The spokesperson said that the $1 billion figure was a typo and Trump meant $100 billion. The White House remarks refocused attention on the possibility of trade wars between the U.S. and its major trading partners.
  • US. retail sales fell 0.1% in February the Commerce Department said on Wednesday. This was compared to a 0.1% drop in the previous month that was revised up from an initial decline of 0.3%. Economists had forecast a rise of 0.3%.
  • US. producer prices rose in February, according to data released on Wednesday. The Labor Department said its producer price index increased 0.2% last month. In the 12 months through February, the PPI rose 2.8%. Economists had forecast the PPI rising 0.1% last month and increasing 2.8% from a year ago.