03 March 2022
World Market – Headlines
Commodity-linked currencies gain as oil extends rally
Asia-Pacific stocks mostly rise as oil prices continue jumping
OPEC maintains output despite Russia’s assault on Ukraine, pushing oil to its highest level since 2011.
In early trades, the Indian rupee is projected to be little changed against the dollar, as crude oil prices continue to rise and risk appetite improves.
At open, the rupee is expected to trade at about 75.68-75.70, down from 75.70 yesterday.
The impact of a worsening crisis in Ukraine kept oil and other raw material prices climbing on Wednesday, boosting commodity-linked currencies.
In Moscow, the Russian rouble plummeted 4.5 percent versus the dollar to 106.02. It hit a new low of 110.0 during the session, as Western sanctions in response to Moscow’s invasion of Ukraine wreaked havoc on Russia’s financial system.
The Canadian, Australian, and New Zealand currencies also strengthened as investors anticipated higher commodities prices.
The U.S. dollar index , which tracks its performance against six major currencies, was last flat after hitting its highest since June 2020. The euro was last nearly unchanged against the dollar, after slipping to a 21-month low during the session.
The Indian stock market is projected to open in the green, with a 34-point rise on the SGX Nifty, indicating a bullish start for the broader index in India.
Yesterday, the BSE Sensex dropped 778 points to 55,469, while the Nifty50 dropped 188 points to 16,606, forming a Doji pattern on the daily charts as the index recovered losses and finished around its opening losses.
As U.S. markets recovered overnight, Asia-Pacific stocks were mostly higher in Thursday trade. Oil prices, on the other hand, have continued to rise after a recent price jump.
In Japan, the Nikkei 225 index rose 0.63 percent, while the Topix index rose 1.07 percent. The Kospi in South Korea climbed 1.4 percent as well.
Mainland The Shanghai composite rose 0.24 percent, while the Shenzhen component fell 0.603 percent. The Hang Seng index in Hong Kong rose 0.29 percent.
The S&P/ASX 200 index rose 0.67 percent in Australia.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 0.54 percent.
In Wednesday trade, US oil rose to its highest level in more than a decade, with global benchmark Brent surpassing $113 per barrel after OPEC and its oil-producing allies, including Russia, decided to maintain output levels.
The oil market was already tight before Russia’s invasion of Ukraine, and traders are concerned that supply shortages will result as a result of countries avoiding important supplier Russia’s oil.
The U.S. oil benchmark, West Texas Intermediate crude futures, rose more than 8% to $112.51 a barrel, the biggest level since May 2011. Brent crude surged more than 8% to $113.94 per barrel, reaching its highest level since June 2014.
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