19 January 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events
- Leaping yields buttress dollar ahead of Fed meeting
- Asia-Pacific markets trade mixed after overnight sell-off on Wall Street
- Oil hit 7-year highs as tight supply bites
The Indian rupee is expected to weaken against the dollar today after U.S. equities tumbled on worries over the pace of Federal Reserve rate increases.
The rupee is tipped at around 74.62-74.64 in initial trades after falling to a more-than-two-week low of 74.57 yesterday.
The dollar was firm on Wednesday after a rip higher in U.S. yields vaulted it up sharply on the euro overnight, putting it back above support levels that have held for the past few months in anticipation of rising U.S. interest rates.
The euro fell about 0.7% on Tuesday, its sharpest daily drop in a month, and is back on its 50-day moving average at $1.1323. Two-year Treasury yields have leapt 15 basis points over two sessions to cross 1% and benchmark 10-year yields stand at a two-year high of 1.8842%. The U.S. dollar index rose 0.5% on Tuesday and held that gain at 95.768 on Wednesday.
Asia-Pacific markets traded mixed on Wednesday following an overnight sell-off on Wall Street.
The Nikkei 225 in Japan dropped 1.49% while the Topix index was lower by 1.54%. South Korean shares were mixed: While the Kospi retraced earlier losses and rose 0.24%, the Kosdaq fell 0.21%. Hong Kong’s Hang Seng index rose 0.41% while the tech-focused Hang Seng Tech index was up 0.16%. Chinese mainland shares struggled for gains in early trade: The Shenzhen component was down 0.64% while the Shanghai composite fell 0.12%. In Australia, the ASX 200 dropped 0.48% as most sectors traded lower.
Oil prices on Tuesday climbed to their highest since 2014 as investors worried about global political tensions involving major producers such as the United Arab Emirates and Russia that could exacerbate the already tight supply outlook.
The risk added a premium to prices during the session. Brent crude futures rose $1.03, or 1.2%, to settle at $87.51 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended $1.61, or 1.9%, higher at $85.43 a barrel. Both benchmarks touched their highest since October 2014, and some OPEC sources say $100-per-barrel oil is not out of reach.
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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.