Friday, 12 June 2020
Our View in a Snapshot
|Expected Range||9400 – 9800||75.90 – 76.30|
- Asian stocks set to fall sharply as Wall Street tumbles
- Safe-haven currencies gain on worries of lingering economic pain
- Oil prices extend slump as U.S. coronavirus cases climb
Asian equities are set to fall sharply on Friday after Wall Street stocks and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of reopening economies.
The three major U.S. stock indexes fell more than 5%, posting their worst day since mid-March, when markets were sent into free fall by the abrupt economic lockdowns put in place to contain the pandemic.
Australian S&P/ASX 200 futures were down 3.04%, while Japan’s Nikkei 225 index closed down 2.82% at 22,472.91 on Thursday. Hong Kong’s Hang Seng index futures were down 2.06%. On Wall Street, the Dow Jones Industrial Average dropped 6.9%, the S&P 500 lost 5.89%, while the Nasdaq Composite shed 5.27%.
Our View on Stock Market
The Indian stock market is expected to open deep in the red tracking its Asian peers and overnight crash in Dow.
The Nifty futures are likely to open around 9,550.
The likely range for the day is 9,400 – 9,800
The safe-haven Swiss franc and the yen held on to gains on Friday while the U.S. dollar also held firm against riskier currencies after global stock prices tumbled on renewed doubts over the prospects of a quick recovery in the global economy.
The Swiss franc rose to 0.94395 per dollar , having hit a three-month high of 0.9376 on Thursday. The yen also rose to 106.79 yen per dollar . It hit a one-month high of 106.58 on Thursday. The euro stood at $1.1299 , off Wednesday’s three-month high of $1.14225. Similarly, the British pound slipped to $1.2582 from Wednesday’s high of $1.2812. The Australian dollar tumbled to $0.6838
Our View on USD / INR
The Indian rupee is expected to extend losses against the U.S. currency as stocks tumbled and the dollar index surged amid fears of a second wave of the coronavirus in the world’s largest economy.
The rupee will likely be quoted around 76.10 to a dollar in early trades.
The Rupee is likely to trade in the Range of 75.90 to 76.30
Oil prices slid early on Friday, extending heavy overnight losses on a surge in U.S. coronavirus cases this week that has raised the prospect of a second wave of the outbreak slamming demand in the world’s biggest consumer of crude and fuel.
West Texas Intermediate was down $1.32, or nearly 4%, at $35.02 a barrel, after slumping more than 8% on Thursday. Brent crude was down $1.15, or 3%, at $37.40 a barrel.
Source : Reuters