Markets at a Glance

#Commentary #Report #Equity #Currency #Oil

Monday, 8 June 2020

  • Asia stocks mostly rise as U.S. jobs data bounces unexpectedly
  • Dollar is dented as data bolsters hope for economic recovery
  • Oil climbs over 2% after OPEC+ extends output cuts to end-July

Our View in a Snapshot


NIFTYUSD/INR
Expected Open1032575.55
Expected Range10250 – 1040075.40 – 75.80

Equity

Stocks in Asia were mostly higher in Monday morning trade after U.S. jobs data released Friday had an unexpected jump, spurring hopes of an economic recovery from the coronavirus pandemic.

Mainland Chinese stocks were higher in early trade, with the Shanghai composite up around 0.6% while the Shenzhen component jumped 1.214%. Hong Kong’s Hang Seng index also gained 0.48%.

In Japan, the Nikkei 225 added 0.75% as shares of Fanuc gained 2.28%. The Topix index also rose 0.52%. Over in South Korea, the Kospi fell into negative territory as it traded fractionally lower.Overall, the MSCI Asia ex-Japan index traded about 0.2% higher.

Our View on Stock Market

Indian stock market is expected to open gap up following global cues after a surprise recovery in US employment and with the domestic economy getting back on track. Nifty indicates a gap up opening for Indian indices with around 139 points gain. 

The Nifty futures are likely to open around  10,300 – 10,325 Range.

The likely range for the day is 10,250 – 10,400

Currencies

The U.S. dollar fell against the Antipodean currencies and the British pound after surprising improvement in U.S. labour market data bolstered expectations for economic recovery, which reduced safe-harbour demand for the greenback.

The Australian dollar  rose 0.34% to $0.6993, approaching the highest since Jan. 2. The New Zealand dollar rose to $0.6533, the highest since Jan. 29. Against the pound , the dollar fell 0.25% to $1.2704 in Asia on Monday, close to its lowest since March 12. The dollar traded at 109.67 yen (JPY=EBS), close to a two-month high set on Friday.

Our View on USD / INR

The Indian rupee is expected to trade little changed against the U.S. currency after an unexpected increase in payrolls in the world’s largest economy boosted risk assets and helped dollar index recover. 

The rupee will likely be quoted around 75.55-75.60 in early trades 

The Rupee is likely to trade in the Range of 75.40 to 75.80

OIL

Oil prices rose more than 2% early on Monday to their highest in three months after OPEC and its allies including Russia agreed to extend record oil production cuts until the end of July.

Brent crude climbed to as high as $43.41 a barrel and was trading at $43.32, up $1.02, or 2.4%. U.S. West Texas Intermediate (WTI) crude gained 83 cents, or 2.1%, to $40.38 a barrel. Both hit their highest since March 6.

Published by prashanti forex

Prashanti Forex is managed by a certified treasury professional with an experience of more than 15 years in Finance and Advisory Business. His expertise come from various organisations, where he has gained knowledge and deep understanding of financial environment. His Principle Objective is providing customised advise with excellent service, committing a relationship based on integrity, understanding, honesty and trust. We are glad to offer you a boutique of services which will enable your organisation to enhance the profitability and efficiently manage the business risks. Our Services are : Treasury & Risk Management Solutions Trade Finance Wealth Management

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