Financial Market Overview
12th April, 2018
MARKETS AT OPEN:-
- Indian rupee started weaken against the dollar in early trades as crude oil prices rally amid the possibility of a U.S. military strike on Syria. Pair USDINR now at 65.43 against 65.30 at previous close.
- India is due to release the retail inflation data for March later today. Inflation is expected to have eased to 4.20% on year in March from 4.44% in February. India’s Monetary Policy Committee, which held rates steady earlier this month, targets inflation at 4%.
- Pair to tip in range between 65.15-65.45.
- Benchmark indices opened flat amid weak global cues and spike in crude oil prices, as investors await corporate earnings and macro data.
- The 30-share BSE Sensex was up 47.56 points at 33,988 while the 50-share NSE Nifty fell 17.40 points to 10,399.80.
- Asian markets are lower today. The Shanghai Composite is down 0.60% the Australian’s ASX200 lost 0.37% and the Hong Kong’s Hang Seng is trading lower by 0.35%.
- European markets finished lower yesterday with shares in Germany leading the region. The DAX was down 0.83% while France’s CAC 40 was off 0.56% and London’s FTSE 100 was lower by 0.13%.
- Wall Street fell on Wednesday as possible U.S. military action against Syria stoked investor concerns about geopolitical risks and minutes from the latest Federal Reserve meeting sparked worries about a more hawkish view on interest rate increases. The Dow Jones Industrial Average fell 218.62 points, or 0.9 percent, to 24,189.38, the S&P 500 lost 14.68 points, or 0.55 percent, to 2,642.19 and the Nasdaq Composite dropped 25.28 points, or 0.36 percent, to 7,069.03.
- The nearest-month Brent crude contract gained 1.44% in the previous session to $72.06, its highest levels in more than three years following reports that Saudi Arabia claimed to have intercepted missiles over Riyadh.
- President Donald Trump warned that the U.S. was preparing for a military strike on Syria following a suspected poison gas attack over the weekend. Concerns over a potential conflict between the U.S. and Russia, which supports Syrian President Bashar al-Assad, have offset optimism about easing trade tensions between the U.S. and China.
- Minutes of the U.S. Federal Reserve’s last policy meeting showed policymakers felt the U.S. economy would improve further and inflation would rise in the coming months, with majority agreeing to a gradual approach to hiking interest rates. Separately, data showed U.S. core Consumer Price Index rose 2.1% last month against a 1.8% rise in February.