Dec 28 2018

Rupee Opened Higher As Asian Currencies Gain

Financial Market Overview

28th December, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar, tracking gains in most regional currencies and equities after Wall Street recouped losses to end higher.
  • The rupee opened at 70.05 versus its previous close of 70.35. “Regional markets took cues from the reversal in U.S. equities. Crude oil prices also pared most of its gains in the previous session, and it will further support the rupee. However, month-end dollar demand from importers is likely to continue.
  • Most Asian shares traded higher tracking the overnight gains in U.S. stocks. All the three indexes staged a recovery in the last few hours of trade. The pullback in the stocks came a day after the gauges rose 5%, marking their biggest single-session rise in more than nine years.
  • We expect USD/INR to trade in a range between 69.85 to 70.30 today.

Indian Equities:-

  • Equity benchmarks have had a good start in opening trade. The Nifty is above 10,800 level.
  • The Sensex is up 168.80 points or 0.47% at 35976, and the Nifty up 48.30 points or 0.45% at 10828.00.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.47% while the Hang Seng is up 0.03%. The Shanghai Composite is trading up by 0.15%. The Australia ASX is trading up by 21 points or 0.38%.
  • European markets finished broadly lower today with shares in Germany leading the region. The DAX is down 2.37% while London’s FTSE 100 is off 1.52% and France’s CAC 40 is lower by 0.60%.
  • U.S. stocks ended positive on Thursday, with major indexes roaring back late from steep losses earlier in the session, as a late-year rebound in equities continued for a second day. The Dow Jones Industrial Average rose 256.19 points, or 1.12 percent, to 23,134.64, the S&P 500 gained 20.45 points, or 0.83 percent, to 2,488.15 and the Nasdaq Composite added 25.14 points, or 0.38 percent, to 6,579.49.
  • Confidence among U.S consumers fell in December, marking its lowest level in five months, amid growing concerns of an economic slowdown. The Conference Board’s index of consumer confidence decreased to 128.1 this month, compared to a reading of 133.7 forecast by economists.
  • The number of people who filed for unemployment assistance in the U.S. last week came in below expectations, according to official data released on Thursday. The number of individuals filing for initial jobless benefits in the week ended Dec. 22 decreased by 1,000 to 216,000, the U.S. Department of Labor said. Figures for the prior week were revised up to 217,000 from the prior reading of 214,000.
  • The dollar index slipped 0.6% yesterday, further supporting the Asian currencies. The Thai Baht and the Malaysian Ringgit were among the top gainers. The index has remained under pressure this week amid a partial U.S. shutdown and increasing difference between the White House and the Federal Reserve.
  • The benchmark Brent crude prices slipped more than 4% yesterday, after rising nearly 8% on Dec. 26, amid concerns over global economic growth and oversupply. It ended at $52.16 per barrel after rising to $54.47 per barrel in the previous session