11 March 2022
World Market – Headlines
- The euro falls after the ECB meeting, while the dollar rises in response to inflation statistics.
Hong Kong is down roughly 3%, leading Asia’s losses as Chinese tech stocks fall.
Oil continues to lose value; Russia will keep its supply contracts.
Currency
Indian Rupee
The Indian rupee is predicted to fall against the dollar today, following the release of the latest US inflation report, which increased the likelihood of the Federal Reserve raising interest rates soon.
The rupee is expected to open at about 76.40-76.42, down from 76.31 yesterday. Yesterday, after U.S. consumer prices grew 7.9% last month, the quickest pace in 40 years, the dollar index soared, U.S. shares fell, and Treasury yields rose. Prices increased 0.8 percent month over month, up from 0.6 percent in January.
“Initially, the rupee would be under pressure, but we doubt there will be much enthusiasm to take it much lower.” Brent crude trading below $110 should bring some respite, as well as the assurance that the RBI will protect the 77 level, according to a private-sector bank trader. “Taking into account elevated risk premiums, oil volatility, and the RBI, inter bank and corporates will likely play the 76 to 77 area for the time being.”
Other Currencies
Following the European Central Bank’s declaration that it will phase down its stimulus in the third quarter, the euro recovered from overnight gains on Thursday, while the dollar climbed following a solid U.S. inflation report.
The euro was trading at $1.0985, down 0.83 percent from its high of 1.6 percent on Wednesday, its best day in nearly six years.
After losing 1.17 percent on Wednesday, the dollar index was up 0.547 percent at 98.506.
The Australian dollar, the New Zealand dollar, and the Canadian currency all rose on the day, with the Aussie up 0.58 percent, the Kiwi up 0.49 percent, and the loonie up 0.37 percent.
Bitcoin fell over 6% to $39,434, wiping away most of its gains from the previous day, when an executive order from US President Joe Biden instructing the government to create reports on the future of money allayed market fears of a regulatory crackdown on cryptocurrency.
After a recent rally from about 97.8, the US dollar index, which monitors the greenback against a basket of peers, was at 98.523.
The Japanese yen was trading at 116.22 per dollar, still weaker than earlier this week’s lows of below 115.5.
Equity
Indian Equity
The Indian stock market is projected to open in the red, with SGX Nifty trends indicating a 71-point drop for the broader index in India.
On the daily charts, the BSE Sensex rose 817 points to 55,464 and the Nifty rose 249 points to 16,595 to form a Bearish Belt Hold candle.
The pivot charts show that the Nifty’s important support level is 16,443, followed by 16,291. The important resistance levels to watch if the index rises are 16,752 and 16,909.
Other Markets
Asia-Pacific stocks fell in Friday trade, matching Wall Street losses, as investors remain wary of the Russia-Ukraine conflict.
The Hang Seng index in Hong Kong led regional losses, plunging 3.01 percent, while Chinese IT stocks listed in the city suffered huge losses: Tencent fell 4%, Alibaba fell 5.62 percent, and Meituan fell 8.32 percent.
In mainland China, the Shanghai composite fell almost 2%, while the Shenzhen component fell 2.074 percent.
The Nikkei 225 in Japan dropped more than 2%, giving up part of its over 4% gain on Thursday. The Topix index has lost 1.93 percent of its value.
The Kospi fell 1.09 percent in South Korea. The S&P/ASX 200 index in Australia fell 0.74 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 1.58 percent.
The S&P 500 index down 0.43 percent overnight to 4,259.52, while the Dow Jones Industrial Average fell 112.18 points to 33,174.07. To 13,129.96, the Nasdaq Composite fell 0.95 percent.
In the morning of Asian trading hours, oil prices were uneven, with international benchmark Brent crude futures down 0.2 percent to $109.11 a barrel. Crude futures in the United States rose 0.16 percent to $106.19 a barrel.
Oil
After a tumultuous day, oil prices closed nearly 2% down on Thursday, a day after their worst daily drop in two years, as Russia committed to fulfill contractual obligations and some traders claimed supply disruption fears were exaggerated.
After climbing as much as 6.5 percent earlier in the session, Brent futures lost $1.81, or 1.6 percent, to close at $109.33 a barrel. WTI crude in the United States lost $2.68, or 2.5 percent, to end at $106.02 a barrel, giving up more than 5.7 percent of its intraday gains.
Following the settlement, the market continued its losses, with Brent trading at $109.09 and WTI at $105.79.
Economic Events
Economic Calendar | ||||
Friday, Mar 11, 2022 | ||||
Time | Country | Event | Forecast | Previous |
12:30 | GBP | GDP (MoM) | 0.20% | -0.20% |
12:30 | GBP | Manufacturing Production (MoM) (Jan) | 0.20% | 0.20% |
15:30 | EUR | EU Leaders Summit |
|
|
19:00 | CAD | Employment Change (Feb) | 160.0K | -200.1K |
20:30 | USD | Michigan Consumer Expectations (Mar) | 58.8 | 59.4 |
Prepared by
Anushree Saxena (Intern)
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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.
Sources
