Sep 24 2018

Rupee opened lower tracking emerging currencies as China cancels trade talks with US.

Financial Market Overview

24th September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened lower against the dollar at 72.47 amid a decline in regional currencies after China reportedly cancelled trade talks with the U.S. scheduled for this week. Equities and credit space will be keenly watched by investors after the Reserve Bank of India said it is monitoring recent developments in the nation’s financial markets. Pair USDINR now at 72.45 against 72.1950 at its previous close on Friday.
  • We expect the pair to trade in the range between 72.20 to 72.60.

Indian Equities:-

  • Equity benchmarks have turned negative after witnessing a mildly higher start. The Nifty is hovering around 11,100, while the Sensex is down around 50 points lower.
  • The Sensex is down 50.16 points or 0.14% at 36791.44, while the Nifty is down 18.30 points or 0.16% at 11124.80. The market breadth is negative as 465 shares advanced, against a decline of 554 shares, while 70 shares were unchanged.

Global Markets:-

  • Financial markets in Japan, China, South Korea, and Taiwan are closed today. In regional equities, Hong Kong’s benchmark gauge slipped 1.3%, Australian’s ASX 200 is off 0.14% and Indonesia’s dropped 0.5%..
  • European markets finished broadly higher on Friday with shares in London leading the region. The FTSE 100 is up 1.67% while Germany’s DAX is up 0.85% and France’s CAC 40 is up 0.78%..
  • US. stocks were mixed after the close on Friday, as gains in the Telecoms, Oil & Gas and Utilities sectors led shares higher while losses in the Technology, Financials and Consumer Services sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average added 0.32% to hit a new all time high, while the S&P 500 index declined 0.04%, and the NASDAQ Composite index declined 0.51%..
  • The offshore yuan dropped 0.3% to 6.8652 against the dollar following a report by The Wall Street Journal over the weekend, citing people briefed on the matter, that China had cancelled trade talks that were planned for the coming days. The cancellation is expected to further sour trade relations between the two nations, which are just a few hours away from another round of tariffs. Washington is set to impose tariffs on $200 billion of Chinese imports in addition to the $50 billion in place currently, and Beijing will levy additional duties on another $60 billion to go along with the already existing $50 billion.
  • The Indonesian rupiah and Korean Won were the other major losers in Asian currencies on Monday, down 0.36% and 0.44% respectively.