Thursday, 16 July 2020
- China’s second-quarter GDP grows 3.2% year-on-year, beats expectations
- Dollar nurses losses as investors wait for China data
- Asian markets look to continue upward run on vaccine hopes
- Oil prices slip after OPEC, allies agree to loosen oil supply curbs
China’s economy grew 3.2% in the second-quarter from a year earlier, data showed on Thursday, recovering from a record contraction as lockdown measures ended and policymakers stepped up stimulus to combat the shock from the coronavirus crisis. On a quarter-on-quarter basis, GDP rose 11.5% in April-June, the bureau said, compared with expectations for a 9.6% rise and a 9.8% decline in the previous quarter.
The dollar nursed losses on Thursday and riskier currencies found support on signs of progress in developing a coronavirus vaccine, even as the virus itself continues to spread and investors fret over simmering Sino-U.S. tensions.
The growth-sensitive Australian dollar held close to 70 cents and near a month high. The euro hovered just below a four-month top touched overnight on hopes that European leaders can agree on a recovery fund. The mood pushed the safe-haven Swiss franc half a percent lower overnight and it lifted the crude price and oil exporters’ currencies along with it. The Norwegian krone rose to a one-month high of 9.2715 per dollar and the Canadian dollar advanced to a week high of 1.1305 on the greenback.
Our View on USD / INR
The rupee is likely to open stronger around 75.11 due to rally in riskier assets.
The Rupee is likely to have resistance at 75.30 (Bollinger Band) and 75.44 (100 DMA) and support at 75.00 (Big Figure) and 74.48 (Bollinger Band)
Asian shares look set to continue a march upwards as optimism over a coronavirus vaccine carry weight over the ongoing spread of the disease and simmering U.S.-China tensions.
Australian S&P/ASX 200 futures rose 0.37% in early trading. Japan’s Nikkei 225 futures added 0.07%, and Hong Kong’s Hang Seng index futures rose 0.25%.E-mini futures for the S&P 500 rose 0.19%.MSCI’s gauge of stocks across the globe closed up 1.16%. The Dow Jones Industrial Average rose 0.85%, while the S&P 500 gained 0.91% and the Nasdaq Composite grew 0.59%.
Our View on Stock Market
The Indian stock market is expected to open flat to slightly positive around 20 to 30 points from previous close tracking the asian peers.
The Nifty futures are likely to open around 10,620.
The likely range for the day is 10,500 – 10,700
Oil prices slid on Thursday after OPEC and allies such as Russia agreed to ease record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a bigger-than-expected drawdown from the country’s crude stocks.
Brent crude fell 13 cents, or 0.3%, at $43.66 a barrel, and U.S. West Texas Intermediate (WTI) crude dropped 18 cents, or 0.4%, to $41.02 a barrel.
Source : Reuters
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