Wednesday, 10 June 2020
Our View in a Snapshot
|Expected Range||10000 – 10250||75.30 – 75.70|
- Asian shares slip after mixed Wall Street session
- Dollar nurses losses amid caution ahead of Fed
- Oil rises as production curbs offset renewed demand fear
Asian equities slipped on Wednesday after most U.S. stocks pared gains made during their recent rally, although the Nasdaq benchmark reached its second straight day at a record high
Australian S&P/ASX 200 fell 0.4%, Japan’s Nikkei 225 index lost 0.8% and South Korea’s KOSPI slipped 0.3%. The Nasdaq’s 0.3% gain came on the back of strong gains in tech-related shares. The Dow Jones Industrial Average fell 1.09% and the S&P 500 declined 0.78%.
Our View on Stock Market
Markets are likely to open in the green tracking Asian cues despite US markets including Dow Jones closing in the red. SGX Nifty indicates a positive opening with 36 points gain. The Nifty futures were trading at 10,108 on the Singaporean Exchange.
The Nifty futures are likely to open around 10,100 – 10,125 Range.
The likely range for the day is 10,000 – 10,250
The dollar nursed losses against most currencies on Wednesday amid some speculation the U.S. Federal Reserve could take steps to curb a recent rise in bond yields at its policy meeting.
The dollar was little changed at 107.75 yen on Wednesday in Asia following a 0.6% decline in the previous session. Against the British pound, the greenback traded at $1.2713, close to a three-month low. The dollar bought 0.9510 Swiss franc on Wednesday in Asia after falling 0.7% on Tuesday. The Australian dollar pulled back from an 11-month high and fell 0.27% to $0.6941, while the New Zealand dollar fell from its strongest level since late January to traded at $0.6487.
Our View on USD / INR
The Indian rupee is expected to trade higher after the dollar extended its decline ahead of the U.S. Federal Reserve’s monetary policy decision and release of summary of economic projections.
The rupee will likely be quoted around 75.50 to a dollar in early trades compared with 75.61
The Rupee is likely to trade in the Range of 75.30 to 75.70
Oil prices rose on Tuesday, as optimism about recent commitments from major oil producers to curb production offset concerns that a resurgence in coronavirus cases could hurt fuel demand.
Brent crude rose 38 cents, or 0.9%, to settle at $41.18 a barrel. West Texas Intermediate crude (WTI) rose 75 cents, or 2%, to end at $38.94 a barrel.
Source : Reuters