Jun 25 2018

Rupee opens lower as OPEC raised production less than expectations

Financial Market Overview

25th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opened lower after the OPEC raised output by less than what some analysts had expected. A report that President Donald Trump is planning curbs on Chinese investment into U.S. companies fuelled more worries on the trade front, weighing on the rupee and other regional currencies. Pair USDINR now at 68.08 against 67.8350 previous close.
  • We expect the pair to tip in range between 67.90-68.23 today.

Indian Equities:-

  • Shares have begun the week on a flat note, with the Nifty holding 10,800-mark. The Sensex is down 17.18 points at 35672.42, and the Nifty down 8.20 points at 10813.70. About 385 shares have advanced, 456 shares declined, and 56 shares are unchanged.
  • Infosys, Lupin, IndusInd Bank, Vedanta are the top gainers, while Dr Reddy’s, Tata Motors, ICICI Bank, RIL, Yes Bank and SBI are the top losers.

Global Markets:-

  • Asian markets are mixed today The Shanghai Composite gains  0.12% while the Hong Kong’s Hang Seng is down 0.53% and the Australian’s ASX200 is trading lower by 0.22%.
  • European markets finished broadly higher on Friday with shares in London leading the region. The FTSE 100 closed up 1.67% while France’s CAC 40 was up 1.34% and Germany’s DAX was closed up 0.54%.
  • The S&P 500 and Dow Jones Industrial Average climbed on Friday, as the Dow put to rest an eight-day losing streak with a boost from energy stocks, but losses in the technology space kept the Nasdaq in check. The Dow Jones Industrial Average rose 118.98 points, or 0.49 percent, to 24,580.68, the S&P 500 gained 5.08 points, or 0.18 percent, to 2,754.84 and the Nasdaq Composite dropped 20.14 points, or 0.26 percent, to 7,692.82
  • Brent crude surged more than 3% on Friday and the U.S. benchmark oil rose 4.5% after the OPEC and its allies agreed to an increase in output, which was lesser than what a section of analysts had expected. The oil producers, in a meeting in Vienna, agreed to raise their output from July by about 1 million barrels per day.
  • Asian currencies and equities were under pressure following a report by the Wall Street Journal over the weekend that the U.S. Treasury Department is crafting rules that would block firms with at least 25% Chinese ownership from buying U.S. companies involved in “industrially significant technology.” The report added that the plans were not finalized and the industry would have a chance to comment on the proposed measures. The Chinese yuan extended last week’s decline, falling 0.3% versus the dollar to its lowest since early January and it was last seen at 6.53.