World Markets
27 January 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar climbs as Fed flags hikes
- Asian Stocks Down, Hawkish Fed Policy Decision “Largely as Expected”
- Oil breaks $90/bbl for the first time since 2014 on Russia tensions
- Fed likely to hike rates in March as Powell vows sustained inflation fight
Indian Rupee
The Indian rupee is set to weaken against the dollar today after the U.S. Federal Reserve said it would move on an aggressive path to tighten monetary policy and “soon” raise interest rates to quell rising inflation.
The rupee, resuming trade after yesterday’s holiday, will likely open around 75.10 compared with 74.56 on Tuesday, according to a trader with a private-sector bank. This would be the first time in a month that the rupee slips below 75.
Currency
The dollar hit multi-week highs against other major currencies on Thursday, bolstered after Federal Reserve chair Jerome Powell primed investors for U.S. rate hikes beginning in March.
The yen inched a fraction lower to 114.74 per dollar on Thursday. The euro was sold to a six-week low of $1.2301 and the Australian dollar fell about 0.4% to a seven-week trough of $0.7076. Sterling is testing support at $1.3454, as investors await a Bank of England meeting next week and have an eye on the turmoil enveloping Prime Minister Boris Johnson, who is under pressure after attending parties during lockdowns.
Equity
Asia Pacific stocks were down on Thursday morning, with U.S. Treasuries trimming a fall. Investors continued to digest U.S. Federal Reserve Chairman Jerome Powell’s signal of an interest rate hike as soon as March 2022, with more to follow.
Japan’s Nikkei 225 fell 2.47% ). South Korea’s KOSPI slid 2.94%,In Australia, the ASX 200 fell 2.75%, re-opening after a holiday. Hong Kong’s Hang Seng Index fell 2.11%. China’s Shanghai Composite was down 0.69% and the Shenzhen Component was down 0.29%.
Indian Stock market is also expected to open near 16900 ,almost 300 points down from Tuesday Close. 16800 is a strong support for today.
Oil
Oil rose on Wednesday, tuoching $90 a barrel for the first time in seven years, supported as tight supply and rising political tensions between Russia and Ukraine added to concerns about further disruption in an already-tight market.
Brent crude gained $1.76, or 2%, to settle at $89.96 a barrel, after surpassing $90 for the first time since October 2014. U.S. West Texas Intermediate (WTI) crude closed up $1.75, or 2%, to $87.35 a barrel.
US Interest Rates
The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.
Subsequent interest rate increases and an eventual reduction in the Fed’s asset holdings would follow as needed, Powell said, while officials monitor how quickly inflation falls from current multi-decade highs back to the central bank’s 2% target.
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.
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