Jun 04 2018

Rupee opens higher as US jobs data lift risk asset demand

Financial Market Overview

04th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open higher against the dollar at 66.96, as a buoyant U.S. jobs data spurs a rally in regional currencies and equities. Pair USDINR now at 66.91 against 67.06 previous close.
  • Late Friday, data released by the RBI showed that India’s foreign exchange reserves fell for a sixth straight week, declining to $412.82 billion as of the week ended May 25 compared with $415.05 billion in the week prior.
  • We expect the pair to tip in range between 66.80-67.20 today.

Indian Equities:-

  • Benchmark indices started off the week on a strong note, tracking positive lead from global stocks.
  • Th e 30-share BSE Sensex rallied 236.77 points to 35,464.03 and the 50-share NSE Nifty rose 61.20 points to 10,757.40.

Global Markets:-

  • Asian markets are higher today. The Hong Kong’s Hang Seng is up 1.33%, the Australian ASX200 gains 0.51% and the Shanghai Composite is trading higher by 0.19%.
  • European markets finished broadly higher on Friday with shares in France leading the region. The CAC 40 is up 1.24% while Germany’s DAX is up 0.95% and London’s FTSE 100 is up 0.31%.
  • Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the U.S. economy and geopolitical tensions eased. Based on the latest available data, the Dow Jones Industrial Average rose 218.79 points, or 0.9 percent, to 24,634.63, the S&P 500 gained 29.16 points, or 1.08 percent, to 2,734.43 and the Nasdaq Composite added 112.22 points, or 1.51 percent, to 7,554.33.
  • Data released on Friday showed that the U.S. economy added 223,000 jobs last month, higher than the 188,000 expected by economists in a poll. In addition to the upbeat headline number, average hourly earnings growth of 0.3% on-month and drop in unemployment rate to 3.8% was better than what analysts had expected.
  • Focus will continue to be on trade issues. On Sunday, China, following a round of talks between Beijing and Washington, warned that any agreements reached on trade between the two countries will be void if Washington implements tariffs. The statement, carried by the official news agency, was referring to a consensus reached last month in Washington where Beijing agreed to purchase more US goods and services. The remarks came after White House earlier last week threatened to continue to pursue tariffs on $50 billion worth of Chinese goods.