Financial Market Overview
03rd July, 2018
MARKETS AT OPEN:-
- Rupee opens lower as decline in Chinese yuan continues to spill over to other Asian currencies. Pair USDINR now at 68.91 against 68.80 previous close.
- We expect the pair to tip in range between 68.80-69.10 today.
- Benchmark indices started off trade on a flat note depsite weakness in the Asian peers due to ongoing trade tensions between US and China.
- The Sensex fell 33.24 points to 35,231.17 and the Nifty slipped 11.40 points to 10,645.90.
- Asian markets are mixed today. The Hong Kong’s Hang Seng is sharply 3.14% down, The Shangahi Composite fell by 1.61% while the Australian ASX200 is trading higher by 0.47%.
- European markets finished broadly lower yesterday with shares in London leading the region. The FTSE 100 is down 1.17% while France’s CAC 40 is off 0.88% and Germany’s DAX is lower by 0.55%.
- US. stocks ended slightly higher on Monday as gains in Apple and other tech shares helped offset a slump in energy as well as concerns about an escalating trade war between Washington and its trading partners. Based on the latest available data, the Dow Jones Industrial Average rose 35.77 points, or 0.15 percent, to 24,307.18, the S&P 500 gained 8.34 points, or 0.31 percent, to 2,726.71 and the Nasdaq Composite added 57.38 points, or 0.76 percent, to 7,567.69.
- Yuan down 0.5% at 6.7000 against dollar, its lowest level in a year. Chinese currency already down 1.2% in two trading days this month, headed for biggest two-day loss since August 2015. Disappointing economic data and trade tensions hurting outlook on Chinese currency. Korean won, Singapore dollar, Malaysian ringgit down 0.2% each.
- Trump’s administration on Monday recommended denying China Mobile’s application to offer telecommunications services from within the U.S. The move comes just three days before the U.S. tariffs on $34 billion of Chinese imports are scheduled to take effect.
- The dollar index edged lower on Tuesday, after rising in the previous session following better-than-expected manufacturing activity data. The ISM manufacturing index climbed to 60.2, up from 58.7 in previous month.