World Markets
02 February 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- India goes on a spending spree to boost growth, stokes concern over fiscal deficit
- Dollar restrained by risk revival, spread of rate speculation
- Japan’s Nikkei 225 rises nearly 2%
- Oil little changed despite talk of possible OPEC+ supply boost
FREE RISK ASSESSMENT FOR EXPORTERS / IMPORTERS
Indian Budget
India’s government will step up spending to 39.45 trillion rupees ($529.7 billion) in the coming fiscal year to build public infrastructure and drive economic growth, it said on Tuesday, but it involves a wider fiscal deficit than targeted and record borrowing.
Finance Minister Nirmala Sitharaman, presenting the annual budget to parliament, said total government spending in the 2022/23 fiscal year beginning in April will be 4.6% more than the current year.
Trillions of rupees will be allocated to expressways, affordable housing and solar manufacturing to put growth on a firmer footing, she said.
Growth is estimated to be 9.2% for 2021/2022, coming off a low base and slowing to 8 to 8.5% in the coming fiscal year, still the fastest among the world’s major economies.
Currency
The dollar was carrying a couple of bruises on Wednesday as Federal Reserve officials played down the chance of a half point rate hike in March and a rally in global equity markets tarnished some of its safe haven allure.
The euro looked steadier at $1.1270 , having risen 0.3% overnight and further away from last week’s 20-month trough at $1.1122. The dollar was back at 114.70 yen , after dropping 0.4% overnight and away from last week’s top at 115.68 which now marks major resistance. Still, it remains comfortably above key support around 113.47.
Equity
Shares in Asia-Pacific rose in Wednesday trade, with multiple major markets in Asia remaining closed for the Lunar New Year holidays.
The Nikkei 225 gained 1.73% in morning trade while the Topix index advanced 1.97%. In Australia, the S&P/ASX 200 climbed 1.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.29% higher. Markets in mainland China, Hong Kong, Singapore and South Korea are closed on Wednesday for the Lunar New Year holidays.
Overnight stateside, shares on Wall Street rose for a third day. The Dow Jones Industrial Average jumped 273.38 points to 35,405.24 while the S&P 500 climbed 0.69% to 4,546.54. The Nasdaq Composite edged 0.75% higher to 14,346.
Oil
Oil prices ended little changed on Tuesday, as geopolitical tensions and tight global supplies supported the market even as some speculated that OPEC+ might boost supplies more than expected.
The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, has been expected to decide at a monthly meeting on Wednesday tokeep gradually increasing production. Brent crude settled down 10 cents, or 0.1%, at $$89.16 a barrel while U.S. West Texas Intermediate crude rose 5 cents to $88.20.
Economic Events
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
