Rupee trading marginally lower following Trump's latest threat on US-China trade war

Rupee trading marginally lower following Trump's latest threat on US-China trade war

19 Jun 2018 09:53 AM
 
Myforexeye Research Report

Financial Market Overview

19th June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee trading slightly lower against the dollar in opening quotes, following U.S. President Donald Trump’s latest threat to impose more tariffs on $200 billion of Chinese imports. Pair USDINR now at 68.02 against 67.99 previous close.
  • We expect the pair to tip in range between 67.90-68.10 today.

Indian Equities:-

  • Benchmark indices started off the day on a negative note Tuesday following weakness in the Asian peers on escalated trade war tensions.
  • The Sensex fell 90.36 points to 35,457.90 and the Nifty declined 30.80 points to 10,769.10.
  • State Bank of India, HPCL, BPCL, ICICI Bank, UPL, Reliance Industries and Tata Steel are under pressure. Dr Reddy's Labs, Bharti Airtel, ONGC and HDFC Bank are gainers.

Global Markets:-

  • Asian markets are mixed today The Shanghai Composite is down 2.66%, the Hong Kong's Hang Seng falls 1.94% while the Australian ASX200 is trading higher by 0.38%.
  • European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX closed down 1.36% while France's CAC 40 was off 0.93% and London's FTSE 100 was lower by 0.03%.
  • The Dow and S&P fell modestly on Monday, ending well off session lows, as gains in energy shares helped curb declines stemming from trade war concerns after China's retaliation to U.S. tariffs. The Dow Jones Industrial Average fell 101.91 points, or 0.41 percent, to 24,988.57, the S&P 500 lost 5.79 points, or 0.21 percent, to 2,773.87 and the Nasdaq Composite added 0.65 point, or 0.01 percent, to 7,747.03.
  • Trade tensions between the U.S. and China escalated after Trump threatened to impose tariffs on additional $200 billion worth of Chinese goods. The president said in a statement that he had asked the country’s trade representative to identify Chinese products that could be subjected to the levy. Trump added that his latest move was in retaliation to Beijing’s decision to impose tariffs on $50 billion of U.S. goods.
  • China, over the weekend, had said it will levy additional duties on U.S. imports in response to Washington’s earlier move to slap tariffs on Chinese imports. Trump had said that he would consider taxing more of Chinese imports if Beijing retaliated.
  • China’s commerce ministry as saying earlier today that the U.S. threat of $200 billion tariffs list disobeys negotiations and consensus reached between the two nations previously and if the U.S. published an additional tariff list, Beijing will have to adopt measures to “fight back firmly.”

Date : Jun-2018