22 March 2022
World Market – Headlines
- Powell’s hawkishness drives the yen above the 120 mark.
Wall Street is now again concerned about Ukraine and inflation.
The price of oil is rising as EU nations consider imposing a ban on Russian oil.
Currency
Indian Rupee
The Indian rupee is projected to fall against the US dollar today after Treasury yields rose after US Federal Reserve Chair Jerome Powell indicated a willingness to raise rates more aggressively to battle inflation.
The rupee is expected to open at 76.30-76.35, down from 76.11 the day before. The two-year Treasury yield increased to 2.18 percent, while the 10-year yield increased to 2.32 percent, both setting new highs since May of this year. The dollar index fell to about 98.70, and Asian currencies fell 0.2 to 0.5 percent.
Other Currencies
On Tuesday, the yen fell below the critical 120 level for the first time since 2016, after Federal Reserve Chair Jerome Powell’s hawkish speech boosted bets on rising US interest rates and widened the policy gap with a dovish Bank of Japan.
In early Asia trade, the yen slipped nearly 0.4 percent to 120.08 per dollar. It has fallen nearly 4% this month as rising US yields have attracted flows from Japan.
The dollar was broadly stronger abroad, pushing the euro down to $1.0992, down 0.2 percent.
The Australian dollar fell to $0.7386, while the New Zealand dollar fell to $0.6873.
The dollar index inched up to 98.700, up 0.2 percent. The pound fell 0.2 percent to $1.3144.
The Chinese yuan was trading at 6.3739 per dollar in offshore trade, having pulled back from recent highs and stabilized in a new range as investors wait for promised monetary easing.
Equity
Indian Equity
The Indian stock market is projected to open flat, with a gain of 16 points on the SGX Nifty, indicating a cautious start for the broader index in India.
The BSE Sensex was down 571 points at 57,292 on March 21 after rising 4% the week before, pulled down by banking and financials, auto, FMCG, and IT firms. On the daily charts, the Nifty50 fell 169 points to 17,118, forming a Bearish Engulfing pattern.
The pivot charts show that the Nifty’s important support level is 17,025, followed by 16,932. The important resistance levels to watch for if the index rises are 17,282 and 17,446.
Other Markets
On Monday, U.S. stocks fell broadly, while oil prices and Treasury yields rose, as investors refocused on the threats posed by the Ukraine crisis and the Federal Reserve’s measures on inflation.
The Dow Jones Industrial Average sank 201.94 points, or 0.58 percent, to 34,552.99; the S&P 500 dropped 1.94 points, or 0.04 percent, to 4,461.18; and the Nasdaq Composite slid 55.38 points, or 0.4 percent, to 13,838.46.
After one of its 737 planes crashed in China, Boeing’s stock dropped 3.6 percent.
The STOXX 600 index in Europe increased 0.04 percent, while MSCI’s global stock index fell 0.24 percent.
After dropping more than 3% last week, gold rose 0.75 percent to $1,935 an ounce on Monday.
Oil
The news that certain European Union countries are considering placing penalties on Russian oil, as well as strikes on Saudi oil installations, drove tremors through the market on Tuesday morning.
Front-month On the New York Mercantile Exchange, West Texas Intermediate futures were up $2.21, or 1.97 percent, to $114.33 a barrel, while Brent futures were up $2.51, or 2.26 percent, to $118.23 a barrel.
Crude oil prices soared after reports that the EU was considering joining the US in an oil embargo against Russia, while a weekend attack on Saudi oil installations also sparked concern. Brent crude was at $116.42 per barrel, up 7.87 percent on the day, and US crude was at $112.46 per barrel, up 7.41 percent on the day.
Economic Events
Economic Calender | ||||
Tuesday, 22 March 2022 | ||||
Time | Currency | Event | Forecast | Previous |
13:00 | EUR | ECB’s De Guindos Speaks |
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16:30 | GBP | CBI Industrial Trends Orders (Mar) | 16.00% | 20.00% |
18:45 | EUR | ECB President Lagarde Speaks |
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20:05 | USD | FOMC Member Williams Speaks |
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Prepared by
Anushree Saxena (Intern)
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, we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s views. We are not responsible for any losses on account of following the same.
Sources
