Jun 11 2018

Rupee opens little changed amid focus on geopolitics and central banks

Financial Market Overview

11th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open little changed against the US Dollar at 67.46, as investors await policy decisions from three major central banks and a high profile summit between the U.S. and North Korea during the week. Pair USDINR now at 67.47 against 67.50 previous close.
  • We expect the pair to tip in range between 67.25-67.60 today.

Indian Equities:-

  • Shares have begun the week on a positive note, with the Nifty trading eyeing 10,800-mark.
  • The Sensex is up 46.03 points or 0.13% at 35489.70, and the Nifty up 15.50 points or 0.14% at 10783.20. The market breath is positive as 393 shares advanced, against a decline of 151 shares, while 60 shares are unchanged.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is up 0.44%, while the Shanghai Composite fell 0.26% and the Australian’s ASX200 is trading lower by 0.20%.
  • European markets finished mixed as of the most recent closing prices on Friday. The CAC 40 gained 0.03%, while the DAX led the FTSE 100 lower. They fell 0.35% and 0.30% respectively.
  • US. stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions, but trading volume was relatively light ahead of a busy week of central bank meetings. The Dow Jones Industrial Average rose 75.12 points, or 0.3 percent, to 25,316.53, the S&P 500 gained 8.6 points, or 0.31 percent, to 2,778.97 and the Nasdaq Composite added 10.44 points, or 0.14 percent, to 7,645.51.
  • The week will also see policy decision from the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan. On Wednesday, the Fed will almost certainly increase interest rates by a quarter percentage points and attention will be on whether worries over inflation pushes the central bank to take a more hawkish tone. The day after that, ECB policymakers are expected to hold discussions on ending their asset-purchase program. No change in policy is expected from the BoJ on Friday.
  • Among the rupee’s peers, the Korean won was trading higher on Monday, while the Chinese yuan edged lower. The Canadian dollar opened the week on a defensive note following differences between Trump and Canada’s Prime Minister Justin Trudeau at Group of Seven summit.