Nov 06 2018

Rupee Opened Higher As Dollar Slips

Financial Market Overview

06th November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the U.S. currency as the dollar index declined ahead of the U.S. mid-term elections. The rupee opened at 72.95 versus its previous close of 73.12. Yesterday’s retreat on the dollar index was probably on account of position adjustments before the election outcome, which could herald a period of increased volatility in global financial markets.
  • The dollar’s decline against the major currencies yesterday came despite a better-than-expected U.S. services data. The ISM non-manufacturing PMI came in at 60.3 for October, better than the 59.3
  • Asian currencies were mostly higher on Tuesday, led by the Indonesian rupiah. Regional equities were mixed, with China’s benchmark index down 0.6% and Japan’s gauge rising about a percent.
  • Brent crude nearest-month oil futures 0.3% lower at $72.94.
  • We Expect Pair to trade in the range between 72.75 to 73.15

 Indian Equities:-

  • Equity benchmarks have started higher today morning trade, with the Nifty opened at 10551 level – 26 points.
  • The Sensex is up by 78.00 points at 35028.00,

 Global Markets:-

  • Asian markets are mixed today as Chinese and Hong Kong shares fall. The Japanese Nikkei 225 is up by 1.02% while the Hang Seng is down 0.31%. The Shanghai Composite is off -1.4% while the Australian ASX200 is up by 51 points and 0.88%
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.14%, while the DAX led the CAC 40 lower. They fell 0.21% and 0.01% respectively.
  • The S&P 500 rose on Monday, with the biggest boosts coming from the financial, energy and defensive sectors as investors showed caution on the eve of U.S. congressional elections. The Dow Jones Industrial Average rose 191.07 points, or 0.76 percent, to 25,461.9, and the S&P 500 gained 15.26 points, or 0.56 percent, to 2,738.32 but the Nasdaq Composite dropped 28.14 points, or 0.38 percent, to 7,328.85.
  • The rate of growth in the economy’s service sector slowed in October, after having hit record levels in the prior month, even as the expansion continued for its 105th consecutive month. The Institute of Supply Management said its non-manufacturing purchasing managers’ index fell to 60.3 in October, from 61.6 the previous month.
  • Business activity in Britain’s dominant services sector slowed to a seven-month low last month and firms’ expectations for the coming year are the gloomiest since just after the 2016 Brexit vote, a major survey showed on Monday. The IHS Markit/CIPS purchasing managers’ index (PMI) dropped to 52.2 in October from 53.9 in September, its lowest since a patch of unusually icy weather in March and a bigger fall than economists had forecast in a Reuters poll.
  • The dollar index dropped 0.3% yesterday, trimming its entire non-farm payroll data-related advance. The retreat came before the U.S. mid-term elections.