Jul 26 2018

Rupee opens higher as US and EU agreed to lower trade barriers

Financial Market Overview

26th July, 2018

Morning Coffee:-                                                                                  



  • Indian Rupee opened higher against the U.S. currency at 68.71 The agreement between the EU and the U.S. provides a “semblance of hope” that the current trade feud may not intensify, although the talks with EU “have to be viewed with a different color” relative to China. Pair USDINR now at 68.70 against its previous close of 68.78 on Wednesday.
  • We expect the pair to tip in range between 68.55-68.85 today.

Indian Equities:-

  • Thursday morning Indian Equity indices have made a flat start, Sensex hitting a fresh record high, but the Nifty is still a few points away from the fresh record high.
  • The Sensex is up 43.42 points or 0.12% at 36901.65, while the Nifty is up 9.50 points or 0.09% at 11141.50. The market breadth is positive as 313 shares advanced, against a decline of 131 share.
  • Among sectoral indices, PSU banks, FMCG, infra and auto names are trading strong, while weakness is visible in the pharmaceuticals space. The Nifty Midcap index is up over 0.10 percent.

Global Markets:-

  • Asian markets are showing bear face today . The Hong Kong’s Hang Seng loose-213 points-0.74% The Shanghai Composite is  down 0.63%,  and the Australian’s ASX200 is trading little lower by -0.02%.
  • European markets finished lower today with shares in Germany leading the region. The DAX is down 0.87% while London’s FTSE 100 is off 0.66% and France’s CAC 40 is lower by 0.14%
  • Wall Street’s major indexes close higher on Wednesday as technology stocks soared and reports indicated that U.S. President Donald Trump had secured concessions from the European Union on trade. The Dow Jones Industrial Average  rose 172.64 points, or 0.68 percent, to 25,414.58, the S&P 500 gained 25.66 points, or 0.91 percent, to 2,846.06 and the Nasdaq Composite added 91.47 points, or 1.17 percent, to 7,932.24.
  • The dollar index was poised for a third day of losses on Thursday after the EU and the U.S. agreed to work towards lowering trade barriers following a meeting between President Donald Trump and European Commission President Jean-Claude Juncker. After the meeting, Trump reportedly said they had agreed to “work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.
  • The dollar sagged on Thursday and the euro advanced, as the United States and the European Union agreed to begin talks to lower tariffs, easing immediate concerns about worsening global trade tensions. Following talks with European Commission President Jean-Claude Juncker, U.S. President Donald Trump said on Wednesday they had agreed to “work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.