World Markets

20 December 2021

World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.

• Dollar near highs for the year, euro struggles
• Asia-Pacific stocks drop as China cuts benchmark lending rate for first time since April 2020
• Oil prices skid on demand worries

Currency

The U.S. dollar hovered near the highest since July of last year against major peers on Monday after a Federal Reserve official signaled a first pandemic-era interest rate hike could come as early as March.

The Fed’s hawkish turn combined with safe-haven flows underpinned the U.S. dollar index near its best for the year at 96.665 , following a 0.7% jump on Friday.

The euro was languishing at $1.1241 , having shed 0.8% on Friday to threaten its low for the year at $1.1184. The Japanese yen has safe haven status of its own and held steady at 113.63 per dollar.

Sterling was down at $1.3228 as Omicron worries erased all the gains made following the Bank of England’s surprise rate rise last week.

Equity

Shares in Asia-Pacific were lower in Monday trade, with China slashing its benchmark lending rate for the first time in more than one-and-a-half years. China on Monday announced a cut in its one-year loan prime rate from 3.85% to 3.8% — the first such move since April 2020.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.9% lower.. Mainland Chinese stocks were lower, with the Shanghai composite down about 0.3% and the Shenzhen component falling 0.71%. Hong Kong’s Hang Seng index dipped 0.77%. Nikkei 225 in Japan led losses among the region’s major markets as it dropped 1.81% while the Topix index shed 1.66%. South Korea’s Kospi dipped 1.33%. Australian stocks also declined, with the S&P/ASX 200 down 0.45%.

Oil

Oil prices dropped more than 2% as investors continue to track the spread of the omicron Covid variant, with the World Health Organization recently warning that case numbers are doubling in 1.5 to 3 days in areas with community spread.

Brent fell $1.56 to $71.96 a barrel, while U.S. crude lost $1.43 to $69.43 per barrel.

Indian Rupee

The Indian rupee is expected to drop against the dollar today, tracking a broad decline in Asian currencies and shares following more restrictions to contain the Omicron coronavirus mutation.

The rupee is tipped at around 76.15 in initial trades compared with 76.09 in the previous session. The currency is poised to extend losses following a four-week losing run that has pushed it to its lowest level in one-and-a-half years.

India Stock Market

The Indian stock market is expected to open lower as trends on SGX Nifty indicate a weak start for the index in India with a 72 points loss.

On December 17, the BSE Sensex plunged 889.40 points, or 1.54 percent, to close at 57,012, while the Nifty50 has breached the crucial 17,000 mark, falling 263 points or 1.53 percent to 16,985.20