Nov 22 2018

Rupee Opened Higher As Brent Crude Nears $63 Per Barrel

Financial Market Overview

22nd November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar as Brent crude slips to near its lowest in almost a year. The rupee opened at 71.14 versus its previous close of 71.45, The rupee will have the support of “a major positive” in the shape of oil prices, but it is unlikely to rally above 71 in the light of tepid global risk sentiment and expected dollar demand from corporates. With the rupee more than 4% off its record lows, interbank may be unwilling to attempt another push higher on the domestic unit.
  • The Brent crude fell more than 6% on Tuesday, which dragged it to the lowest level since last December. Oil prices did manage a minor rebound on Wednesday, but they were back to losing ways in early Asia trading today. Indian currency and bond markets were closed yesterday.
  • We expect USD/INR to trade in a range between 70.95 – 71.35 today.

 Indian Equities:-

  • Benchmark indices are trading higher in the opening session with Nifty trading above 10,600 level.
  • The Sensex is up by 107 points at 35,307 or 0.24 % while Nifty is up by 20 points at 10620 or 0.19 %.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.02% while the Hang Seng is down 0.16%. The Shanghai Composite is off by -0.36%. The Australian ASX 200 is up by 33 points or 0.59 %.
  • European markets closed sharply higher today with shares in Germany leading the region. The DAX is up 1.61% while London’s FTSE 100 is up 1.47% and France’s CAC 40 is up 1.03%.
  • The S&P 500 ended higher on Wednesday after a brutal two-day selloff, led by a rebound in energy and technology shares, but the market faltered toward the session’s end as Apple shares surrendered gains ahead of the Thanksgiving holiday.
  • Dow Jones Industrial Average, ended flat, the S&P 500 gained 8.04 points, or 0.30 percent, to 2,649.93 and the Nasdaq Composite added 63.43 points, or 0.92 percent, to 6,972.25.
  • U.S. home sales rose slightly in October and snapped a six-month streak of drops but ongoing weakness in the housing market led a national realtors association to ask the Federal Reserve to take a break from interest rate hikes.
  • Japan’s annual core consumer inflation was unchanged in October from the previous month as soft household spending kept firms from hiking prices, a sign the economy lacks the momentum needed to achieve the central bank’s 2 percent target.
  • The Federal Reserve is expected to raise rates for the fourth time this year at its December meeting, but analysts have begun to question whether the central bank can afford more hikes next year amid a clouded growth outlook and the recent selloff in risk assets.
  • Brent crude oil contract 0.5% lower at $63.16 per barrel. It fell over 6% to $61.71 per barrel on Nov. 20, lowest in over 11 months.
  • Dollar index flat at 96.68 after falling 0.1% in previous session.