Apr 05 2018

Rupee opens higher as US signals to negotiate with China on trade; RBI monetary policy awaited

Financial Market Overview

05th April, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens higher after US signals willingness to negotiate on trade with China, boosting risk assets. Pair USDINR now at 65.00 against 65.15 previous close.
  • The focus of investors will on the policy review by India’s Monetary Policy Committee. The consensus is for the MPC to hold the key interest rate at 6% at the conclusion of its meeting later in the day.
  • Pair to tip in range between 64.90-65.20.

Indian Equities:-

  • Benchmark indices bounced back sharply, tracking strong lead from global stocks and ahead of RBI monetary policy outcome.
  • The 30-share BSE Sensex was up 345.45 points or 1.05 percent at 33,364.52, and the 50-share NSE Nifty rose 112.80 points or 1.11 percent to 10,241.20.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hnag Seng is down 2.19%  the Shanghai Composte lost 0.18% while the Australian ASX200 is trading higher by 0.71%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.05%, while the DAX led the CAC 40 lower. They fell 0.37% and 0.20% respectively.
  • Wall Street’s three major indexes staged a big comeback to close higher on Wednesday as investors turned their focus towards earnings and away from a trade conflict between the United States and China that wreaked havoc early in the session. The Dow Jones Industrial Average rose 230.66 points, or 0.96 percent, to 24,264.02, the S&P 500 gained 30.23 points, or 1.16 percent, to 2,644.68 and the Nasdaq Composite added 100.83 points, or 1.45 percent, to 7,042.11.
  • Trump’s top economic advisor says tariff announced on China were mere proposals and indicated planned tariffs were negotiating tactic. China’s ambassador to U.N. said negotiations would be their preference, but required both sides to be agreeable.
  • The dollar index was little changed and so where most of the rupee’s peers. Data released yesterday showed that U.S. private payrolls increased by a higher-than-expected 241,000. In a separate report, the Institute for Supply Management’s (ISM) non-manufacturing index came in at 58.8, slightly lower than what economists had projected.