Wednesday, 17 June 2020
Our View in a Snapshot
| NIFTY | USD/INR | |
| Expected Open | 9850 | 76.30 |
| Expected Range | 9700 – 10000 | 76.00 – 76.50 |
- Asian stocks set to rise as drug trials, data push Wall Street higher
- Dollar Gains on better US Retail Sale Data
- Oil prices rise 3% on signs of U.S. economic recovery
Equity
Asian stocks were set to climb on Wednesday after another late Wall Street surge in response to upbeat trial results for a COVID-19 treatment and data showing U.S. consumers spent big in May. The prospects of fresh support from the Federal Reserve and Bank of Japan also supported global equity markets.
In Asia, Australian S&P/ASX 200 futures were up 0.5%, while Japan’s Nikkei 225 futures were up 0.2%.Hong Kong’s Hang Seng index futures were down 0.3%.
On Wall Street, the Dow Jones Industrial Average rose 2.0%, the S&P 500 gained 1.9% and the Nasdaq Composite added 1.8%. That followed a broad 3% rally in major European bourses.The MSCI’s gauge of stocks across the globe gained 2.2%.
Our View on Stock Market
The Indian stock market is expected to open flat but likely to be under pressure due to clashes with Chinese troops at a disputed border site, in a major escalation of a weeks-long standoff in the western Himalayas.
The Nifty futures are likely to open around 9,850.
The likely range for the day is 9,700 – 10,000
Currencies
Risk appetite found new life on Tuesday on a record rebound in U.S. retail sales, fresh support from the Federal Reserve and Bank of Japan, and upbeat trial results for a COVID-19 treatment, driving global equity markets higher and boosting the dollar.
The dollar was mostly stronger, with the euro down 0.55% to $1.126 and the Japanese yen up 0.01% at 107.32.The British pound rose on unemployment numbers that were not as bad as feared and friendlier Brexit talks.
Our View on USD / INR
The Indian rupee is expected to open gap up against the U.S. currency and likely to weaken against dollar amid rising tension on Indo Chinese borders.
The rupee will likely be quoted around 76.30 to a dollar in early trades.
The Rupee is likely to trade in the Range of 76.00 to 76.50
OIL
Oil prices rose 3% in volatile trade on Tuesday as Wall Street surged and the International Energy Agency (IEA) increased its oil demand forecast for 2020.
Brent crude futures ended the session up $1.24, or 3.1%, at $40.96 a barrel while U.S. West Texas Intermediate crude (WTI) rose $1.26, or 3.4% to settle at $38.38 a barrel.
Source : Reuters
