Nov 02 2018

Rupee Opened Higher After Dollar Index & Oil Prices Tumble

Financial Market Overview

02nd November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the U.S. currency in the wake of broad dollar losses and a slide in Brent crude to a two-month low. The rupee opened at 73.15 versus its previous close of 73.45. Brent crude slipped for the fourth straight day on Thursday, tumbling 3.5% to fall below $73 a barrel. The private bank dealer noted that oil prices are almost $15 a barrel lower from their recent highs, which was a “major positive” for the rupee and for domestic risk sentiment.
  • The offshore yuan rose by the most in more than two-months on Thursday amid hopes of easing trade tensions. The trade tussles between the two world’s largest economies have made the Chinese currency and the nation’s equities among the worst performing in Asia in recent months, which in turn, has hurt the outlook for global growth. Trump’s tweet provided hope to investors that the conflict could be resolved in the coming days.
  • We Expect Pair to trade in the range between 73.00 to 73.45

 Indian Equities:-

  • Equity benchmarks opened higher Today morning the Nifty holding 10,000 levels it opened at 10466. 85 points up.
  • The Sensex is gain by 248 points opened at 34694.

 Global Markets:-

  • Asian markets are higher today as Japanese, Chinese and Hong Kong shares show gains. The Nikkei 225 is up 1.23% while the Hang Seng is up 2.50%. The Shanghai Composite is up 1.42% while the Australian ASX200 is down by 19 points and 0.33%
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.18%, while the FTSE 100 led the CAC 40 lower. They fell 0.19% and 0.15% respectively.
  • U.S. stocks rose for a third straight session on Thursday as President Donald Trump said trade talks with China were “moving along nicely,” reviving hopes that the two countries can resolve their trade dispute.
  • The Dow Jones Industrial Average rose 265.05 points, or 1.06 percent, to 25,380.81, the S&P 500 gained 28.6 points, or 1.05 percent, to 2,740.34 and the Nasdaq Composite added 128.16 points, or 1.75 percent, to 7,434.06.
  • New applications for U.S. unemployment aid fell last week and the number of Americans receiving benefits was the lowest in more than 45 years as labor market conditions tightened further. Initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 214,000 for the week ended Oct. 27, the Labor Department said. Data for the prior week was revised to show 1,000 more claims received than previously reported. Claims fell to 202,000 during the week ended Sept. 15, which was the lowest level since November 1969.
  • The dollar index fell by the most since late-January amid a further improvement in risk sentiment and disappointing economic data. The S&P 500 Index rose for the third day yesterday and Asian equities jumped today following signs that there could a truce in the ongoing trade feud between the U.S. and China. President Donald Trump remarked on Twitter that he had “a very good conversation” on trade with China President Xi Jinping and that the discussions were “moving along nicely” ahead of the planned meeting between the two leaders at a G-20 summit in Argentina.