Tuesday, 9 June 2020
Our View in a Snapshot
|Expected Range||10120 – 10320||75.30 – 75.70|
- Asia stocks extend rally as economic recovery hopes boost confidence
- Dollar slips, commodity currencies gain as risk sentiment improves
- Oil falls 3% despite OPEC+ cuts as Gulf ends voluntary curbs
Asian stocks rallied for their ninth straight day on Tuesday and oil prices jumped as the lifting of coronavirus lockdowns in many countries fed investor hopes of a relatively quick global economic recovery.
MMSCI’s broadest index of Asia-Pacific shares outside of Japan rose for a ninth straight session for its longest winning streak since early 2018. It was last up 0.76% at a three-month peak.
Australia’s S&P/ASX 200 jumped 2.5% while Chinese shares started on a firm footing with the blue-chip CSI300 index rising 0.4%. Hong Kong’s Hang Seng index climbed 1.2%. Japan’s Nikkei bucked the trend to be down 0.5%.
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
The U.S. dollar fell and commodity currencies gained on Monday, as risk appetite increased on optimism about recovery from the coronavirus pandemic amid a blockbuster May U.S. jobs report last Friday.
The dollar index dipped 0.1% to 96.641 in choppy trading, after having gained overnight.The dollar fell sharply against the yen, down 1.1% at 108.33 . It also dropped 0.6% against Swiss franc, another safe haven, to 0.9566. The euro was last up 0.2% at $1.1303. It reached a three-month high of $1.1384 last week after the European Central Bank announced it was expanding its stimulus program. The New Zealand dollar rose 0.8% versus the greenback to US$0.6560, earlier hitting a high of US$0.6564, its strongest since late January. The Australian dollar also rose 0.7% to US$0.7013, with the Canadian dollar also rising, trading 0.4% higher at C$1.3366 per U.S. dollar.
Our View on USD / INR
The Indian rupee is expected to trade higher against the U.S. currency after the S&P 500 Index wiped off year-to-date losses, pushing the dollar index to near-three-month lows.
The rupee will likely be quoted around 75.45-75.50 in early trades
The Rupee is likely to trade in the Range of 75.30 to 75.70
Oil fell more than 3% on Monday after OPEC+ nations agreed to extend output cuts, but Saudi Arabia and two other Gulf producers said they would not maintain supplemental reductions that amount to more than a million barrels of daily supply.
Brent crude fell, breaking a seven-day streak of gains. Brent futures fell $1.50, or 3.6%, to settle at $40.80 a barrel. U.S. West Texas Intermediate crude (WTI), meanwhile, fell $1.36, or 3.4%, to $38.19.
Source : Reuters