Sep 19 2018

Rupee opened higher on China’s response to U.S. tariffs

Financial Market Overview

19th September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher by 27 paise at 72.71 per dollar on Wednesday versus previous close 72.98. The rupee was closed at record low at 72.98 per dollar yesterday on the back of higher crude prices. It fell 47 paise in yesterday trading session.
  • Rupee rebound from record lows after China’s response to the latest U.S. tariffs did not have a major impact on regional assets.
  • We expect the pair to trade in the range between 72.60 to 73.00.

 

Indian Equities:-

  • It is a positive start on the Dalal Steet with Nifty trading above 11,300.
  • The Sensex is up 94.73 points at 37,385.40, while Nifty is up 35 points at 11313.90. About 669 shares have advanced, 266 shares declined, and 41 shares are unchanged.
  • SGX Nifty nearest-month futures trading up 0.1% at 11,322.50. India SEBI broadly agrees to working group’s recommendation on FPIs.

 

Global Markets:-

  • Asian markets are higher today as Japanese, Chinese and Hong Kong shares show gains. The Nikkei 225 is up 1.52% while the Hang Seng is up 1.16%. The Shanghai Composite is up 0.94%.The Australian’s ASX200 is rebound today by 35 points and 0.58%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.51% and the CAC 40 rose 0.28%. The FTSE 100 lost 0.03%.
  • Wall Street rebounded on Tuesday in a broad-based rally as investors brushed aside intensifying trade rhetoric between the United States and China.
  • The Dow Jones Industrial Average rose 185.51 points, or 0.71 percent, to 26,247.63, the S&P 500 gained 15.56 points, or 0.54 percent, to 2,904.36 and the Nasdaq Composite added 60.32 points, or 0.76 percent, to 7,956.11.
  • The reaction of U.S. markets is a bit surprising, considering that the latest tariffs have significantly widened the scope of the trade war. We reckon that may have been what investors had expected as the worst outcome of a higher rate of tariffs.
  • Dollar index little changed at 94.67, after coming off near two-month lows yesterday to end 0.1% higher.
  • Brent crude oil contract off 0.3% at $78.82 per barrel, after rising 1.3% overnight.
  • Japan’s export growth accelerated in August from the previous month supported by stronger shipments to the United States, a sign the escalating trade friction between the Washington and Beijing has yet to hit Japanese trade Beijing added $60 billion of U.S. products to its import tariff list in retaliation for Trump’s planned levies on $200 billion worth of Chinese goods.