23 March 2022
World Market – Headlines
Improved risk sentiment and rising commodity prices benefit the Australian dollar while hurting the yen.
The bond sell-off has pushed money back into stocks..
Oil prices have resumed their ascent following a reduction in US stocks in a tight market.
Despite rising worries regarding the rate at which the US Federal Reserve is likely to adjust its monetary policy, the Indian rupee is projected to edge higher versus the dollar amid a relatively upbeat risk attitude.
The rupee is expected to open around 76.10-76.15 per dollar, down from 76.18 the day before. The currency fell to just below 76.50 yesterday, owing to concerns over oil prices, before rising due to dollar sales by exporters. Brent crude was trading at $116.50 a barrel, down from near $120 earlier in the session.
On Wednesday, the Australian dollar rose and the Japanese yen fell as markets shifted their focus to riskier assets as strong commodities prices drove market movements.
The Australian dollar rose to its highest level against the yen since December 2015, with a gain of 8% so far in March.
In early trade, the Australian dollar rose to a four-and-a-half-month high of $0.7477 against the dollar, after rising 0.95 percent overnight, while the yen fell to as low as 121.4 per dollar, after the dollar rose 1.1 percent against the Japanese currency overnight.
The dollar index, which compares the dollar to six major currencies, was at 98.456, while the euro was barely changed at $1.1022.
As attention turns to UK inflation statistics and British finance minister Rishi Sunak’s Spring Statement, both slated for later on Wednesday, sterling hit $1.3279, its highest level against the dollar in nearly three weeks.
The Indian stock market is projected to open in the green, with a 72-point rise on the SGX Nifty, indicating a bullish start for the broader index in India.
Banks, auto, IT, metal stocks, and Reliance Industries pushed the BSE Sensex up 697 points, or 1.22 percent, to 57,989 on March 22. On the daily charts, the Nifty50 rose 198 points, or 1.16 percent, to 17,315.50, its highest mark since February 16 this year, and formed a bullish candle.
The pivot charts show that the Nifty’s important support level is 17,103, followed by 16,891. The major resistance levels to watch if the index rises are 17,431 and 17,547.
On Wednesday, Asian equities hit three-week highs as money fleeing plunging bond markets flooded back into large tech and other battered sectors, while the Ukraine conflict’s potential to slash supplies further kept oil and commodities prices high.
MSCI’s broadest index of Asia-Pacific equities outside Japan jumped 0.6 percent, with comparable advances in Hong Kong, Seoul, and Sydney.
The index hasn’t been this high since March 4. The Nikkei 225 index in Japan rose 2.5 percent to a two-month high, following overnight gains of 1.1 percent for the S & P 500 and nearly 2 percent for the Nasdaq.
After industry data showed U.S. crude stocks declined this week, underscoring how tight global supplies are with the impact to Russian output from economic sanctions on Moscow, oil prices rose on Wednesday, erasing losses from the previous session.
After losing 14 cents the previous day, Brent crude futures rose $1.06, or 0.9 percent, to $116.54 a barrel .
After losing 36 cents on Tuesday, U.S. West Texas Intermediate (WTI) crude futures rose 87 cents, or 0.8 percent, to $110.14 a barrel.
Supply is still scarce. According to market sources, the latest data from the American Petroleum Institute industry group showed oil stocks declined by 4.3 million barrels for the week ended March 18, defying expert expectations for a rise.
Wednesday, March 23, 2022
CPI (YoY) (Feb)
BoE Gov Bailey Speaks
Fed Chair Powell Speaks
Annual Budget Release
New Home Sales (Feb)
Crude Oil Inventories
Anushree Saxena (Intern)
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