May 09 2018

Rupee lower on Powell comments and Oil price worries

Financial Market Overview

09th May, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened lower against the dollar at 67.34 as the U.S. withdrawal from the Iran nuclear deal stoked concerns crude oil prices may escalate further. The Federal Reserve Chair’s comments on risks from global policy normalization too weighed on appetite for regional currencies. Pair USDINR now at 67.40, against 67.0775 previous close.
  • Pair to tip in range between 67.28-67.50.

Indian Equities:-

  • Equities have begun the day on a lower note, with the Sensex shedding around 50 points, while the Nifty held 10,700 in the opening tick. The market breadth was in favour of advances.
  • The Sensex is down 48.69 points or 0.14% at 35167.63, and the Nifty down 16.30 points or 0.15% at 10701.50. About 302 shares have advanced, 229 shares declined, and 59 shares are unchanged.

Global Markets:-

  • Asian markets are higher today. The Hong Kong’s Hang Seng is up 0.44%, the Australian gains 0.91% and the Australian’s ASX200 is trading higher by 0.16%.
  • European markets finished lower on Tuesday with shares in Germany leading the region. The DAX is down 0.28% while France’s CAC 40 is off 0.17% and London’s FTSE 100 is lower by 0.02%.
  • US. stocks were mixed at the close on Friday, The Dow Jones Industrial Average rose 2.75 points, or 0.01 percent, to 24,360.07. The S&P 500 fell 0.71 points, or 0.03 percent, to 2,671.92, and the Nasdaq Composite added 1.69 points, or 0.02 percent, to 7,266.90.
  • Brent crude up 2.4% at $76.62 in early Asia trading after US withdraws from Iran nuclear deal. Rise in crude renews worries on inflation, sending US 10-year yields back to near 3% level. Dollar index adds to yesterday’s 0.4% rise, climbs 0.1% to new 2018 high; index on track for fourth straight weekly advance. In regional currencies, Korean won and Thai baht down 0.5% each.
  • The Korean won led regional currencies lower in the wake of the dollar index’s advance. Fed Chair Jerome Powell’s comments, in an appearance at an IMF conference in Switzerland yesterday, of prospective risks from withdrawal of global policy accommodation added to the negative sentiments for Asian currencies. Powell noted that “investors and institutions may not be well positioned for a rise in interest rates, even one that markets broadly anticipate”.