16 March 2022
World Market – Headlines
- Before the Fed, the dollar was near a five-year high against the yen; the Australian dollar was weak due to China’s worries.
As China recovers, Asian stocks are rising ahead of the Fed meeting.
For the first time in weeks, oil price benchmarks dip below $100.
Currency
Indian Rupee
The Indian rupee is likely to strengthen versus the dollar today, owing to a better prognosis for the local currency as crude oil prices fall.
The rupee is expected to open at about 76.40-76.45, down from 76.61 in the previous session. The currency had risen to around 76.30 yesterday before a reverse was fuelled by dollar demand from importers.
Other Currencies
With the Ukraine crisis and China’s growing COVID-19 cases as backdrops, the dollar traded at a five-year high versus the yen on Wednesday as investors awaited a Federal Reserve policy announcement.
The dollar index was last seen at 98.880, down from Tuesday’s level. From a low of $1.08060 on March 7, the euro rose 0.14 percent to $1.09695.
After falling to $0.71650 in the previous session for the first time since February 28, the Australian dollar rose 0.08 percent to $0.72015.
The dollar was trading at 118.21 yen, down from 118.45 overnight, its highest level since January 2017.
Equity
Indian Equity
The Indian stock market is projected to open in the green, with SGX Nifty trends indicating a 241-point gap-up opening for the broader index in India.
The BSE Sensex fell over 700 points to 55,777, while the Nifty50 fell over 200 points to 16,663 and formed a bearish candle on the daily charts, while the Nifty Midcap 100 index fell 0.9 percent and the Smallcap 100 index fell 1.4 percent.
The pivot charts show that the Nifty’s main support level is 16,503, followed by 16,342. The important resistance levels to watch if the index rises are 16,875 and 17,088.
Other Markets
Asian stock markets gained on Wednesday, boosted by a recovery in battered Chinese stocks and ahead of a widely awaited Federal Reserve meeting in the United States, although oil prices remained volatile as investors assessed the result of Ukraine peace talks.
On Wednesday morning, the Hang Seng index in Hong Kong rose 2.6 percent, while the blue-chip CSI300 index up 0.5 percent, with MSCI’s broadest index of Asia-Pacific equities outside Japan up 1.21 percent.
The Australian stock market was up 1.08 percent, the Kospi in Seoul was up 0.55 percent, and Japan’s Nikkei stock index was up 1.29 percent.
The gains in Asia came after a relief surge on Wall Street overnight, fueled by expectations for a resolution in Ukraine. The S&P 500 increased by 2.14 percent, while the Nasdaq Composite increased by 2.92 percent and the Dow Jones Industrial Average increased by 1.82 percent.
Oil
Oil prices fell more than 6% on Tuesday, to their lowest level in almost three weeks, after Russia said it would allow the Iran nuclear deal to be revived, and traders were concerned that China’s pandemic lockdowns would stifle demand.
Brent futures fell $6.99, or 6.5 percent, during the day to settle at $99.91 a barrel. The price of West Texas Intermediate (WTI) crude in the United States plummeted $6.57, or 6.4 percent, to $96.44 per barrel. Brent sank to $97.44 and WTI to $93.53, their lowest levels since February 25.
Economic Events
Economic Calander | ||||
Wednesday, 16 March 2022 | ||||
Time | Currency | Event | Forecast | Previous |
10:00 | JPY | Industrial Production (MoM) (Jan) | -1.30% | -1.30% |
14:30 | EUR | ECB Panetta Speak |
|
|
18:00 | USD | Core Retail Sales (MoM) (Feb) | 0.90% | 3% |
18:00 | USD | Retail Sales (MoM) (Feb) | 0.40% | 3.80% |
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
