Jun 13 2018

Rupee lower before Fed’s widely expected rate hike

Financial Market Overview

13th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower before Fed ‘s near certain second rate increase this year. Pair USDINR now at 67.56 against 67.48 previous close.
  • Data release late yesterday showed consumer prices in India rose by 4.87% in May in-line with the 4.83% reading expected by economists poll. Core inflation likely hit a near four-year high of 6.17%, economists pointed out.
  • India’s industrial output grew 4.9 percent in April from a year earlier, driven by a pick up in manufacturing, government data showed on Tuesday. Economists surveyed had forecast 5.2 percent growth in output compared with a 4.6 percent year-over-year increase in March.
  • We expect the pair to tip in range between 67.40-67.70 today.

Indian Equities:-

  • Shares have started on a good note, with the Sensex rising over 100 point, while the Nifty is well above 10,850-mark.
  • The Sensex is up 144.22 points or 0.40% at 35836.74, while the Nifty is up 31.10 points or 0.29% at 10874.00. The market breadth is positive as 314 shares advanced, against a decline of 144 shares, while 46 shares were unchanged.

Global Markets:-

  • Asian markets are lower today The Shanghai Composite is down 0.75%, The Hong Kong’s Hang Seng falls 0.62% and the Australian’s ASX is trading lower by 0.62%.
  • European markets finished mixed to lower as of the most recent closing prices. Shares in London fell as the FTSE 100 dropped 0.43%. The CAC 40 lost 0.38% while the DAX in Germany closed unchanged.
  • US. stocks ended slightly higher on Tuesday, boosted by gains in utilities and technology shares, though investors were cautious ahead of the Federal Reserve’s policy decision. The Dow Jones Industrial Average fell 1.58 points, or 0.01 percent, to 25,320.73, the S&P 500 gained 4.85 points, or 0.17 percent, to 2,786.85 and the Nasdaq Composite added 43.87 points, or 0.57 percent, to 7,703.79.
  • US. inflation accelerated more than expected in May, underlining the case for a faster pace of monetary tightening by the Federal Reserve. Consumer price inflation rose by an annualized 2.8% in May the Labor Department said, up from 2.5% in the previous month. The consensus forecast was for a reading of 2.7%.
  • Dollar index up 0.1%, adding to yesterday’s 0.2% advance. Korean won and Malaysian ringgit lead regional currencies lower.