10 March 2022
World Market – Headlines
- The Russian rouble has hit new lows in Moscow as further sanctions are imposed.
As Asia-Pacific equities surge, Japan’s Nikkei 225 index gains more than 3%; Nio leaps in Hong Kong debut.
Oil prices rise after the UAE declares its commitment to the OPEC+ supply accord.
Currency
Indian Rupee
The rupee would likely open around 76.40 to 76.45, down from 76.56 in the previous session. Yesterday, the benchmark Brent crude contract fell 13.2% to $111.14 per barrel, down 20% from a 14-year high of near-$140 earlier in the week. Crude oil in the United States was trading for less than $110 per barrel, down more than 16 percent from recent multi-year highs.
The rupee will be brought closer to its technical level of 76.20 as oil prices fall, especially given that risk aversion appears to have abated for the time being.
Other Currencies
In onshore trade on Wednesday, Russia’s rouble plummeted to new lows, despite Moscow’s efforts to prop up its devastated economy and ensure hard currency availability in the wake of new economic sanctions sparked by its invasion of Ukraine.
The rouble soared to 120.83 to the dollar on the Moscow Exchange following two days of market closure, before clawing back some losses to settle at 120, or 12.5 percent lower than Friday’s close.
After hitting a high of 131 per euro in early trade, it finished 6.3 percent down versus the euro at 127.
Offshore rouble trading was equally weak, with substantial price disparities: the rouble was at 129 to the dollar on Refinitiv, while it was bid at 138 to the dollar on the EBS platform, down 5.8% from the previous 130 close.
Equity
Indian Equity
The market is projected to open in the green, with the SGX Nifty indicating a 266-point gap-up opening for the broader index in India.
After forming a Bullish Engulfing pattern in the previous session, the BSE Sensex increased 1,223 points to 54,647, while the Nifty50 rose 332 points to 16,345 and produced a bullish candle on the daily charts.
The pivot charts show that the Nifty’s main support level is 16,084, which is followed by 15,823. The major resistance levels to watch if the index rises are 16,512 and 16,679.
Other Markets
Following an overnight rebound on Wall Street, Asia-Pacific stocks climbed in early Thursday trade, as oil prices fell dramatically after a recent rally.
In Japan, the Nikkei 225 index increased by 3.34 percent, while the Topix index increased by 3.46 percent.
Hong Kong’s Hang Seng index increased by 1.26 percent. Nio, a Chinese electric vehicle manufacturer, began trading in Hong Kong on Thursday, marking the company’s secondary listing. The stock was up 5.65% from its initial public offering price at the time of writing.
Mainland Chinese stocks increased as well, with the Shanghai composite up 1.08 percent and the Shenzhen component up 2.234 percent.
The Kospi in South Korea rose 2.03 percent when markets resumed trading following Wednesday’s presidential election, which saw conservative opposition candidate Yoon Suk-yeol win.
The S&P/ASX 200 index rose 1.06 percent in Australia. Rio Tinto, a big miner, saw its stock plummet by roughly 8%. On Thursday, the company informed CNBC that it is “in the process of severing all commercial connections it has with any Russian company.”
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 1.48 percent.
The S&P 500 rose 2.57 percent to 4,277.88 overnight in the United States. The Dow Jones Industrial Average rose 653.61 points to 33,286.25, up 2%. The Nasdaq Composite Index, which is heavily weighted in technology, rose 3.59 percent to 13,255.55.
These Wall Street gains occurred as oil prices fell substantially on Wednesday, with both international benchmark Brent crude and U.S. crude futures falling more than 10%.
Oil prices bounced back in the beginning of Asia trading hours on Thursday, recouping some of their losses.
Oil
Oil prices rose on Thursday as the UAE indicated it will stick to a major producers’ agreement to add 400,000 barrels per day of supply per month, just hours after the UAE’s envoy to Washington stated his country preferred a larger increase.
WTI oil futures in the United States rose more than $3 early after opening, and were trading at $110.23, up $1.53, or 1.4 percent. In the previous session, the contract had dropped 12.5 percent, the greatest daily drop since November.
Brent crude oil, the worldwide benchmark, dropped 13%, or $16.8, to $111.1, its worst one-day loss since April 2020. On Monday, Brent touched a new high of $139, the highest since 2008.
Economic Events
Economic Calendar | ||||
Thursday, Mar 10, 2022 | ||||
Time | Country | Event | Forecast | Previous |
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15:30 | EUR | EU Leaders Summit |
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18:15 | EUR | Deposit Facility Rate (Mar) | -0.50% | -0.50% |
18:15 | EUR | ECB Interest Rate Decision (Mar) | 0.00% | 0.00% |
19:00 | USD | Initial Jobless Claims | 216K | 215K |
19:00 | EUR | ECB Press Conference |
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19:00 | USD | Core CPI (MoM) (Feb) | 0.50% | 0.60% |
Prepared by
Anushree Saxena(Intern)
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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.
Sources
