Thursday, 28 May 2020
- Asian stocks gain on economic hopes, Hong Kong remains a risk
- Dollar stands its ground as U.S.-China tensions grow
- Oil slides on US-China tensions, doubts about Russian output cuts
Our View on USD / INR
In our view the rupee will likely be quoted at around 75.80 in early trades compared with 75.72 at 2.00 p.m. yesterday. It is likely to get support around 75.60 levels and any dip towards 75.50 should be bought. It is likely to have resistance near 75.90 levels and any spike towards 76.10 should be sold in intraday activity.
World Markets at a glance
Asian shares and U.S. stock futures rose on Thursday as growing optimism about economic recovery from the coronavirus pandemic trumped immediate concerns about a standoff between the United States and China over Hong Kong.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%. Australian shares rose 1.86% to the highest in more than two months, while Japan’s Nikkei stock index rose 1.28%
The Dow Jones Industrial Average rose 553.16 points, or 2.21%, to 25,548.27, the S&P 500 gained 44.36 points, or 1.48%, to 3,036.13, and the Nasdaq Composite added 72.14 points, or 0.77%, to 9,412.36.
The dollar held its own on Thursday as rising Sino-U.S. tension put crushing pressure on the Chinese yuan and proved a counterweight to optimism about the coronavirus recovery. Against a basket of currencies it was steady at 98.863, a fraction above a two-month low hit overnight.
Oil futures tumbled on Wednesday after U.S. President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong and as some traders doubted Russia’s commitment to deep production cuts. Brent crude fell 91 cents, or 2.5 percent, to $35.26 a barrel and U.S. West Texas Intermediate (WTI) crude was down 87 cents, or 2.5 percent, at $33.48
Source : Reuters