Jan 29 2018

Rupee opens marginally lower tracking gains in US treausry yields

Financial Market Overview

29th January, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens marginally lower against the dollar at 63.60, in line with most Asian peers, tracking U.S. Treasury yields that rose following slower quarterly growth in the world’s largest economy, even as traders await cues from the Fed’s policy meet. Pair USDINR now at 63.56, against 63.55 previous close.
  • Pair to tip in range between 63.45-63.65 today.

Indian Equities:-

  • Benchmark indices staged smart performance in opening the first day of Budget week as the Sensex and Nifty hit fresh record highs, tracking positive trend in Asian peers and ahead of Union Budget 2018.
  • The 30-share BSE Sensex was up 223.04 points or 0.62 percent at 36,273.48 and the 50-share NSE Nifty gained 51.60 points or 0.47 percent at 11,121.30. About 1,017 shares advanced against 373 declining shares on the BSE.

Global Markets:-

  • Asian markets are mixed today. Shares in China and Hong kong  are trading lower ,the Shanghai  Composite fell by 0.54%, the Hang Seng is trading down by 0.08% while the Australian ASX200 is higher by 0.54%.
  • European markets finished higher on Friday with shares in France leading the region. The CAC 40 is up 0.87% while London’s FTSE 100 is up 0.65% and Germany’s DAX is up 0.31%.
  • The latest round of strong earnings reports, including from Intel and AbbVie, along with continued weakness in the dollar lifted each of the major Wall Street indexes to closing records on Friday. The Dow Jones Industrial Average rose 221.23 points, or 0.84 percent, to 26,614.02, the S&P 500 gained 33.54 points, or 1.18 percent, to 2,872.79 and the Nasdaq Composite added 94.61 points, or 1.28 percent, to 7,505.77.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.4% lower on Friday, its lowest since 2014, on sustained sell-off following U.S. Treasury Secretary Steven Mnuchin’s comments endorsing a weaker greenback.  However, the index was last trading up 0.2%, tracking higher U.S. Treasury yields.
  • The benchmark 10-year U.S. Treasury yields were up 2.69% from 2.66% at previous close after data showed U.S. gross domestic product grew 2.6% in the last quarter of 2017, versus 3.2% in the third quarter and weaker than a 3% increase as forecast by a poll of economists.
  • Bank of Japan Governor Haruhiko Kuroda said at the World Economic Forum in Davos on Friday that there are several factors preventing the central bank from achieving its 2% inflation target, but wages and prices are gradually rising and it is getting closer.