08 March 2022
World Market – Headlines
The dollar rises as energy prices rise, prompting safe-haven flows.
Fears of supply disruption have pushed up the price of oil, wheat, and nickel.
As oil prices rise, Wall Street falls, and the Nasdaq confirms the bear market.
Currency
Indian Rupee
The Indian rupee is projected to open flat against the US dollar, despite a small drop in crude oil prices and lackluster stock markets.
The rupee is expected to open at 76.95 to 77.00, down from 76.96 yesterday.
Other Currencies
The dollar climbed on Monday, boosted by safe-haven flows, as investors assessed the impact of rising oil prices, which touched 14-year highs after the US and its European allies contemplated barring Russian crude imports.
The dollar index, which compares the value of the US dollar to six other currencies, was recently up 0.33 percent at 99.24.
Concerns that increasing energy prices may cause stagflation and hurt the European economy as it tries to recover from the pandemic drove the euro down 0.7 percent versus the dollar to $1.08575.
After losing 3% in three days, the euro maintained over $1.08 on Monday, with its about-turn at $1.0806 possibly significant for the next day
Rouble bids were as high as 150 to the dollar after closing at 121.037 on Friday. The rouble fell as low as 160 to the dollar on the EBS trading platform, a loss of more than 22%, and was last traded at 145, a loss of 14.5 percent on the day.
Equity
Indian Equity
The market is predicted to open in the red, as the broader index is expected to open with a loss of 74 points, according to SGX Nifty trends.
On the daily charts, the BSE Sensex down 1,491 points, or 2.74 percent, to 52,843, while the Nifty50 fell 382 points, or 2.35 percent, to 15,863 and formed a Doji candle.
The pivot charts show that the Nifty’s important support level is 15,735, followed by 15,607. The major resistance levels to watch if the index rises are 15,968 and 16,073.
Other Markets
Industrial buyers and traders hurried to acquire raw materials damaged by supply delays triggered by Russia’s invasion of Ukraine on Monday, sending commodity prices soaring.
On safe-haven appeal, nickel soared 76%, palladium hit a new high, and gold went past $2,000 an ounce, while oil and wheat hit 14-year highs.
We feel oil may hit a range of $180- $185 this year and trigger a worldwide recession.
Palladium surged 15% higher to an all-time high of $3,440 an ounce on concerns over a shortage of the metal used in catalytic converters by vehicles, given that Russia produces 40% of the world’s supply. It afterwards lost a lot of its profits.
Russia is the world’s third-largest nickel producer so nickel soared 76 percent to a 15-year high of $51,000 a tonne as global supply chains tried to price in the possibility of a supply disruption from Russia.
Oil
The potential of a ban on oil imports from Russia drove crude prices skyrocketing and fuelled concerns about increasing inflation, sending Wall Street’s main indexes dramatically lower on Monday, with the Nasdaq Composite confirming it was in a bear market.
Oil prices soared when the US and its European allies announced that they were considering banning Russian oil shipments.
Brent crude rose as much as 17.8% to $139.13 per barrel, its highest level since July 2008, when it hit a high of $147.50, but then fell $20.
Economic Events
Economic Calendar | ||||
Tuesday, Mar 08, 2022 | ||||
Time | Country | Event | Forecast | Previous |
11:30 | JPY | Economy Watchers Current Index (Feb) | 38.1 | 37.9 |
15:30 | EUR | GDP (QoQ) (Q4) | 0.30% | 2.20% |
16:00 | GBP | 30-Year Treasury Gilt Auction |
| 0.87% |
19:00 | USD | Imports |
| 308.90B |
19:00 | USD | Exports |
| 228.10B |
22:30 | USD | EIA Short-Term Energy Outlook |
|
|
[email-subscribers-form id=”2″]
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
