15 Dec 2021
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar holds firm as investors eye major Fed policy meeting
- Asia markets hushed in countdown to Fed lift off
- Oil settles lower on oversupply concerns, strong dollar
- India’s exports rise 27.16% to $30.04 billion in November; trade deficit at $22.91 billion
The dollar held its recent gains in early Asia trading on Wednesday as investors looked towards a key Federal Reserve policy meeting to see if it would reinforce growing market expectations for earlier rate rises next year.
The dollar index which measures the greenback against six major peers was at 96.557, having gained 0.5% so far this week in choppy trading. It is testing last week’s 96.954, which would be a two-week top.
The euro last traded at $1.1265, not far from $1.1184 hit in November, which was its lowest in over a year. The pound languished at $1.13326 as Britain grapples with rising cases of the Omicron variant of the new coronavirus. The yen softened slightly to 113.78 per dollar, continuing a weakening trend. The safe-haven currency had firmed sharply in late November, when the Omicron variant first emerged. The Australian dollar was little changed at $0.7107, and the Canadian dollar was weaker at 1.2854 per dollar, having been bruised by oil prices coming off recent peaks.
Asian markets were precariously poised on Wednesday as the world waited to hear from the U.S. Federal Reserve on when it would stop buying assets and start raising interest rates, possibly piling pressure on its peers to follow.
Futures have already priced in an end to tapering by March and a first hike to 0.25% in May or June, with rates approaching 0.75% by year end.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1% in slow trade. Japan’s Nikkei edged up 0.1% and South Korea lost 0.3%.
Oil futures prices dropped toward $73 a barrel on Tuesday after the International Energy Agency (IEA) said the Omicron coronavirus variant is set to dent global demand recovery.
Brent crude futures fell 69 cents, or 0.9%, to $73.70. U.S. West Texas Intermediate (WTI) crude futures settled down 56 cents, or 0.8%, at $70.73.
India Trade Data
India’s merchandise exports jumped 27.16 per cent to USD 30.04 billion in November on the back of good performance by sectors like petroleum products, engineering goods and electronic items, official data showed on Tuesday.
The exports stood at USD 23.62 billion in November 2020. Imports in November were at USD 52.94 billion, showing an increase of 56.58 per cent over inbound shipments of USD 33.81 billion in the year-ago month.
India Stock Market
The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a flat opening for the broader index in India with a loss of 7 points.
On December 14, the BSE Sensex declined 166.33 points to 58,117, while the Nifty50 slipped 43.40 points to 17,325
The Indian rupee is tipped to drop to its worst level versus the dollar this year on expectations that the U.S. Federal Reserve will speed up the taper pace and signal more rate hikes for next year.
The rupee is expected at around 76.02 in initial trades compared with 75.87 yesterday. It would be the first time in one-and-a-half years that the rupee is slipping below 76.
Major Economic Events
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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.