Nov 28 2018

Rupee Opened Lower After Federal Reserve vice chairman

Financial Market Overview

28th November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened lower against the U.S. currency after the dollar index extended its advance amid latest comments by the Federal Reserve vice chairman and uncertainty over Sino-American trade talks.
  • The rupee opened at 70.88 versus its previous close of 70.76. News flow related to trade tensions between the U.S. and China will continue to dominate risk sentiment this week. The expiry of exchange-traded futures contract at noon today and month-end dollar demand make a case for good two-way moves.
  • We expect USD/INR to trade in a range between 70.65 – 71.05 today.

 Indian Equities:-

  • What a day for Indian markets! Global cues suggested a muted opening but bulls managed to take control in the second half of the trading session despite muted trend seen in Asian as well as European markets. Bulls to take control only if Nifty closes above 10774
  • The Sensex is up by 167 points at 35,680 or 0.47 % while Nifty is up by 24 points at 10710 or 0.23 %.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.89% while the Hang Seng is up 0.84%. The Shanghai Composite is trading at 0.79% up. The Australian ASX 200 is down by -5 points or -0.1%.
  • European markets finished lower today with shares in Germany leading the region. The DAX is down 0.40% while London’s FTSE 100 is off 0.27% and France’s CAC 40 is lower by 0.24%.
  • The S&P 500 and Dow edged higher on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to “turn the page” on a trade war.
  • The Dow Jones Industrial Average, rose 108.49 points, or 0.44 percent, to 24,748.73, the S&P 500 gained 8.67 points, or 0.32 percent, to 2,682.12 and the Nasdaq Composite added 0.85 points, or 0.01 percent, to 7,082.70.
  • The dollar index rose for the third straight day on Tuesday amid remarks by White House economic adviser Larry Kudlow that suggested that Washington was prepared to raise tariffs on imports from China. Reuters reported Kudlow as saying that the responses by Beijing so far have been disappointing and the U.S. “cant’ find much change in their approach.” Kudlow did float the possibility of a deal between the heads of the two countries when they meet this weekend, but suggested that China’s President Xi Jinping will have to be “open.”
  • Fed Vice Chair Richard Clarida said yesterday that the U.S. central bank needed to be more attentive to incoming economic data with interest rates in the world’s largest economy close to neutral. While Clarida backed continued gradual rate increases, he said it will be important to monitor a wide range of data.
  • Brent crude oil contract 0.7% higher at $60.60 per barrel.
  • Ten-year US yield at 3.06%.