Jul 11 2018

Rupee opens on a flat note; US-China trade war escalates

Financial Market Overview

11th July, 2018

Morning Coffee:-                                                                                  



  • Rupee little changed after US threatens tariffs on additional $200 billion of Chinese imports. Pair USDINR now at 68.82 against 68.83 previous close.
  • We expect the pair to tip in range between 68.65-68.95 today.

Indian Equities:-

  • Equity benchmarks has started the day with a flat note and in the early trades the Indian equity indexes have begun loosing the ground following the weak Aisian cues.
  • The Sensex is lower by 12.05 points or 0.03% at 36,227.57, while the Nifty is down 7.60 points or 0.07% at 10939.65. The market breadth is narrow as 235 shares have advanced, against a decline of 222 shares, while 52 shares are unchanged.

Global Markets:-

  • Asian markets are sharply lower tody. The Shanghai Composite lost 1.82%, the Hong Kong’s Hang Seng is down 1.56% and the Australian’s ASX200 is trading lower by 0.62%.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 closed up 0.67% while Germany’s DAX was up 0.53% and London’s FTSE 100 was higher by 0.05%.
  • The S&P 500 extended recent gains to post its highest close since Feb. 1 on Tuesday as strong results from PepsiCo Inc boosted optimism about the earnings season. The Dow Jones Industrial Average rose 142.87 points, or 0.58 percent, to 24,919.46, the S&P 500  gained 9.66 points, or 0.35 percent, to 2,793.83 and the Nasdaq Composite added 3.00 points, or 0.04 percent, to 7,759.20.
  • The Chinese yuan paced losses in Asian currencies, U.S. index futures tumbled along with regional equities, and safe haven demand boosted Treasuries after the U.S. published the next $200 billion worth of Chinese goods that could be subject to tariffs. The move by Washington follows through on President Donald Trump’s threat of more action on Chinese goods in case Beijing imposed extra duties on U.S. imports. Last Friday, China imposed extra duties on $34 billion of U.S. goods in retaliation to a similar move by Washington.
  • In Emerging currencies, the Korean won was down 0.49% ,the Thai baht lost 0.2% and the Chinese Yuan was last seen at 6.6625 down 0.50%.
  • Oil prices fell on Wednesday, with Brent dropping by more than $1 at one point, after U.S. President Donald Trump threatened China with new tariffs. Brent crude futures were down 75 cents, or 1 percent, at $78.11 a barrel, having fallen as low as $77.60. U.S. crude was down 55 cents, or 0.7 percent, at $73.56.