Oct 29 2018

Rupee Opened Higher After Dollar Index Fall

Financial Market Overview

29th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the U.S. currency, after the dollar index slipped from more than two-month highs amid further Wall Street losses.
  • The rupee is open at 73.35 versus the dollar compared with its previous close of 73.46. The opening losses in the dollar are unlikely to sustain, considering the usual month-end demand and the support around the 73.20-73.30 region. The risk appetite remains lackluster and crude oil prices are back on the way up, which likely ensures that the pair remains in the 73.20-74 range in the immediate term.
  • We Expect Pair to trade in the range between 73.15 to 73.55

Indian Equities:-

  • Equity benchmarks opened with little possitive on Today morning the Nifty holding 10,000 levels .
  • The Sensex is up by 95.0 points at 33445.33, while Nifty is up 24 points or at 10054.

Global Markets:-

  • Asian markets are lower today as Japanese, Chinese and Hong Kong shares fall. The Nikkei 225 is off 0.09% while the Hang Seng is up by 0.18% persent. The Shanghai Composite is off 1.36% And the australian ASX200 is up by 68 points and 1.2% up.
  • European markets finished broadly lower on Friday with shares in France leading the region. The CAC 40 is down 1.29% while Germany’s DAX is off 0.94% and London’s FTSE 100 is lower by 0.92%.
  • U.S. stocks sold off further on Friday and the S&P 500 flirted with correction territory as disappointing results punished technology and internet shares.
  • The Dow Jones Industrial Average fell 296.24 points, or 1.19 percent, to 24,688.31, the S&P 500 lost 47 points, or 1.74 percent, to 2,658.57 and the Nasdaq Composite dropped 151.12 points, or 2.07 percent, to 7,167.21.
  • The European Commission rejected Italy’s draft 2019 budget earlier this week for breaking EU rules on public spending, and asked Rome to submit a new one within three weeks or face disciplinary action. We do not see any contagion in Europe. The European Commission has reached out to Italy, I hope Italy will seize this hand.
  • But is the eurozone sufficiently armed to face a new economic or financial crisis? My answer is no. It is urgent to do what we have proposed to our partners in order to have a solid banking union and a euro zone investment budget
  • Dollar index 0.1% higher at 96.45, after falling 0.3% on Friday – biggest single-session drop in two weeks.
  • Brent crude oil contract 0.1% higher at $77.66 per barrel, extending the 0.9% advance in previous session.
  • Ten-year US yield at 3.0793%.