Jul 06 2018

Rupee turned lower as US tariffs looms

06th July, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:

  • Rupee turns lower as traders brace for US tariffs on Chinese goods and retaliation from Beijing. Pair USDINR now at 68.98, against opening low of 68.88 and 68.95 previous close.
  • We expect the pair to tip in range between 68.80-69.09 today.

Indian Equities:

  • The benchmark indices are marginally lower in the opening trade amid weak Asian markets.
  • The Sensex is up 24.01 points or 0.07% at 35598.56, and the Nifty up 1.70 points or 0.02% at 10751.50. About 371 shares have advanced, 517 shares declined, and 55 shares are unchanged.
  • Vedanta, Titan, Hindalco, Tata Steel, UntraTech Cement, ONGC, IndusInd Bank, Maruti Suzuki and HDFC are the major loser in the market.  Infosys, HCL Tech, IOC, TCS, RIL, are the gainers in the market

Global Markets:-

  • Asian markets are mixed today. The Shanghai Composite is off 1.40%, the Hang Seng is down 0.90% while the Australian’s ASX200 is trading higher by 0.70%.
  • European markets finished broadly higher yesterday with shares in Germany leading the region. The DAX is up 1.19% while France’s CAC 40 is up 0.86% and London’s FTSE 100 is up 0.40%.
  • Wall Street’s major indexes rose on Thursday as reports that the United States and the European Union may agree to withdraw auto tariffs fostered optimism on international trade relations among investors. The Dow Jones Industrial Average rose 182.74 points, or 0.76 percent, to 24,357.56, the S&P 500 gained 23.51 points, or 0.87 percent, to 2,736.73 and the Nasdaq Composite added 83.75 points, or 1.12 percent, to 7,586.43.
  • US tariffs on $34 billion of Chinese imports to take effect soon. China said yesterday that additional tariffs on US imports will take effect immediately after US tariff measures become effective. Trump warns subsequent rounds could see tariffs on more than $500 billion of goods if Beijing strikes back. Yuan down 0.5% at 6.6650.
  • Minutes of the Federal Reserve’s June meeting signaled that a flattening U.S. yield curve and trade worries are unlikely to make the authority change its present monetary tightening course. The policymakers, however, did discuss the possibility of recession and said that trade disputes could hurt the U.S. economy’s outlook, which by most measures was currently quite robust.
  • Brent crude edged lower in early Asia trading on Friday, adding to its previous session’s more than 1% decline.