Thursday, 18 June 2020
Our View in a Snapshot
|Expected Range||9650 – 9900||76.00 – 76.50|
- Asian stocks set to fall as Wall St snaps 3-day winning streak
- Dollar Gains due to rising geopolitical risks.
- Oil prices drop on demand worries as coronavirus cases rise
Asian stocks were set to dip on Thursday after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
Australian S&P/ASX 200 futures were down 0.6%, while Japan’s Nikkei 225 futures were off 0.02%.Hong Kong’s Hang Seng index futures were down 0.23%. On Wall Street, The Dow Jones Industrial Average fell 0.65% while the S&P 500 lost 0.36%.
Our View on Stock Market
The Indian stock market is expected to open around 50 to 75 points down from yesterday close tracking asian stocks & global peers.
The Nifty futures are likely to open around 9,800.
The likely range for the day is 9,650 – 9,900
The dollar rose from early lows as investors wary of wider geopolitical risks sought its relative safety. Rising tensions between North Korea and South Korea spurred demand for safe-havens, as did clashes between Indian and Chinese troops at a disputed border site.
The dollar index rose 0.11%, with the euro down 0.05% to $1.1237. The Japanese yen strengthened 0.06% versus the greenback at 106.91 per dollar, while Sterling was last trading at $1.2547, down 0.06% on the day.
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.
The rupee will likely be quoted around 76.25 to a dollar in early trades.
The Rupee is likely to trade in the Range of 76.00 to 76.50
Oil prices fell more than 1% in early trade on Thursday as a spike in new coronavirus cases in China and the United States renewed fears that people would stay home and stall a recovery in fuel demand even as lockdowns ease.
U.S. West Texas Intermediate (WTI) crude futures were down 1.6%, or 60 cents, at $37.36 a barrel. Brent crude futures fell 1.1%, or 45 cents, to $40.26 a barrel.
Source : Reuters