World Markets

World Markets21 March 2022  

World Market – Headlines  

  • The yen begins another week under pressure, with central bank policy at the forefront.
  • As investors understand Russia’s sanctions, stocks rise and oil falls.

  • Oil prices rise as a result of the Ukraine crisis and a tight market.

World MarketsCurrency

Indian Rupee

As crude oil prices and the dollar reversed some of their recent drops, the Indian rupee is projected to depreciate versus the US dollar.

After a three-day weekend, the rupee is expected to open at 75.98-76.02, down from 75.80 on Thursday. The currency had risen by around 1% last week, its best performance so far this year.

Other Currencies

On Monday morning, the Japanese yen continued to fall, while the Australian and New Zealand dollars stayed strong, as traders awaited a series of public statements from global central bank policymakers this week, including Fed Chair Jay Powell later that day.

The dollar gained marginally against the yen, reaching as high as 119.3 yen, threatening Friday’s six-year high of 119.39 yen. Last week, the dollar finished 1.6 percent higher against the Japanese yen.

The dollar index, which compares the greenback to six other currencies, remained unchanged at 98.270.

The New Zealand dollar was trading at $0.6909, close to a four-month high of $0.6926 set earlier this month.

The euro was trading at $1.1044 and the pound was at $1.3158, with the future direction of both currencies being determined by the conflict in Ukraine, which has harmed European economic growth predictions.

Major cryptocurrencies were failing to establish a clear direction in the cryptocurrency markets. The price of bitcoin was $41,300, and the price of ether was $2,860.

 Equity

Indian Equity

The Indian stock market is expected to open in the green on March 21, with SGX Nifty trends indicating a 119-point gap-up opening for the domestic indices.

On Friday, March 18, the Indian stock, commodity, and money markets were closed for Holi.

The BSE Sensex rose 1,047 points, or 1.84 percent, to 57,864 points on Thursday, while the Nifty50 rose 312 points, or 1.84 percent, to 17,287 points, the highest mark since February 17, and created a bullish candle on the daily charts. For the second week in a row, the index exhibited strong bullish candle formation, showing that bulls continue to have the upper hand on Dalal Street.

The pivot charts show that the Nifty’s important support level is 17,194, followed by 17,100. The major resistance levels to watch if the index rises are 17,363 and 17,438.

 Other Markets

Investors welcomed talk of renewed diplomacy after Russia’s invasion of Ukraine, and coordinated Western sanctions left Russia’s energy sector largely untouched. Stocks around the world rebounded on Friday, the US dollar fell, and oil prices fell as investors welcomed talk of renewed diplomacy after Russia’s invasion of Ukraine.

The Nasdaq and the S&P 500 indices both gained for the week, extending the previous session’s rally.

The MSCI World Index ended the week up 2.43 percent after falling 0.7 percent the previous week.

The Dow Jones Industrial Average rose 2.51% after closing 0.28 percent higher on Thursday, the S&P 500 rose 2.24 percent after climbing 1.5 percent the day before, and the Nasdaq Composite rose 1.64 percent after rallying 3.3 percent the day before.

After a stunning 33 percent plunge on Thursday, Russia’s major stock index closed up 20%. In after-hours trade, gains were trimmed slightly, with the index last up over 15%.

Gold, a safe-haven asset, fell 0.8 percent to $1,887.24 per ounce. It had risen to $1,973.96, its highest level since September 2020, on Thursday.

The 10-year Treasury note rate fell 0.7 basis points to 1.965 percent. The yield on the two-year Treasury note, which moves in lockstep with interest rate expectations, was up 2.2 basis points to 1.568 percent.

Oil

On Monday, oil prices soared $2 after Ukrainian soldiers repelled Russian attacks, but major oil companies said they are failing to meet their quotas under a supply agreement.

 Brent crude futures rose $1.96, or 1.8 percent, to $109.89 a barrel on Friday, following a 1.2 percent gain the day before.

WTI crude futures in the United States climbed $2.09, or 2%, to $106.79, extending a 1.7 percent gain last Friday.

Brent crude fell 1.16 percent to $97.93 a barrel, while U.S. West Texas Intermediate crude down 1.3 percent to $91.59.

 Economic Events  

Economic Calander

Monday, 21 March 2022

Time

Currency

Event

Forecast

Previous

12:30

EUR

German PPI (YoY) (Feb)

26.2%

25.00%

13:00

EUR

ECB President Lagarde Speaks

 

 

17:30

USD

FOMC Member Bostic Speaks

 

 

19:30

USD

Fed Chair Powell Speaks

 

 

 

 Prepared by

Anushree Saxena (Intern)

 

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Disclaimer: All information in this report is collected from various sites on the internet. Although we have taken all precautions for the correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s own views. We are not responsible for any losses on account of following the same.

Sources

https://www.reuters.com/

https://in.investing.com/