28 March 2022
World Market – Headlines
The yen is under pressure again as the Bank of Japan intervenes, while bitcoin soars.
As a result of the Shanghai closure, Asian stocks are down and oil prices are down.
Oil prices are falling as the Shanghai lockdown increases concerns about a decline in demand.
Currency
Indian Rupee
Concerns about aggressive Federal Reserve policy tightening to manage inflation spurred another selloff in US assets, which is projected to lower the Indian rupee against the dollar today.
The rupee is expected to open between 76.30 and 76.32, up from 76.20 in the previous session. The two-year Treasury yield surged to near 2.32 percent, its highest level since May 2019, and the 10-year yield was just below 2.50 percent, as traders bet that the Fed will raise rates by 50 basis points at its May meeting, followed by more half-point hikes.
Other Currencies
On Monday morning, the Japanese yen resumed its decline after the Bank of Japan intervened in the market to protect its implied yield cap, while bitcoin climbed to near its all-time high ahead of a week packed with data to lead markets.
The yen dropped to 122.78 per dollar, its lowest level since December 2015, giving up a small gain made on Friday when the Bank of Japan did not intervene to protect its objective.
The dollar rose 0.17 percent to 6.394 on the offshore yuan on Monday morning.
The pound fell 0.1 percent to $1.3168, while the dollar index remained unchanged at 98.909.
Bitcoin was trading about $46,800 in cryptocurrency markets, having jumped as high as $47,766 in early trading, its highest level since early January. The world’s second-largest cryptocurrency, Ether, was trading at $3,289.
This month, the dollar has risen 6.2 percent against the yen to 122.18, while the resource-rich Australian dollar has risen nearly 10% to 91.88 yen.
Even the struggling euro is up 4% against the yen this month, trading at 134.27. The euro has lost around 2.1 percent against the dollar in the same time frame, but it is still above the previous two-year low of $1.0804.
Equity
Indian Equity
The Indian stock market is projected to open flat, with a gain of 8 points on the SGX Nifty, indicating a cautious start for the broader index in India.
The BSE Sensex dropped 233 points to 57,362, while the Nifty50 dropped 70 points to 17,153 on March 25, forming a bearish candle on the daily and weekly charts. It fell 0.8 percent this week after a 6.4 percent gain in the previous two weeks.
The pivot charts show that the Nifty’s important support level is 17,055, followed by 16,957. The major resistance levels to watch if the index rises are 17,273 and 17,393.
Other Markets
On Monday, Asian stocks halted and oil prices fell as a coronavirus lockdown in Shanghai threatened to disrupt global activity, wreaking havoc on supply lines and rising inflationary pressures.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 percent in early trading on Monday. The index has dropped 2.3 percent this month, although it is still considerably above recent lows.
The Nikkei 225 index of Japan fell 0.4 percent but is still about 6% higher for the month as the yen fell, boosting exporter earnings.
Futures on the S&P 500 index fell 0.2 percent, while Nasdaq futures down 0.3 percent.
Gold remained unchanged at $1,955 an ounce in commodity markets, up approximately 2.5 percent for the month.
Oil
Oil prices fell almost $4 on Monday as concerns about slower gasoline demand in China rose after authorities in Shanghai announced that the country’s financial hub would be closed for a nine-day COVID-19 testing blitz.
Brent crude futures fell as low as $116.00 a barrel and were currently trading at $116.77, down $3.88, or 3.2 percent.
WTI crude futures in the United States touched a low of $109.30 a barrel on Friday, and were down $3.92, or 3.4 percent, at $109.98.
On Friday, both benchmark contracts jumped 1.4 percent, marking their first weekly gains in three weeks, with Brent up 11.5 percent and WTI up 8.8 percent.
Brent declined $3.68 to $116.97 as a result of the expansion of curbs in the world’s largest oil importer, while U.S. crude fell $3.30 to $110.60.
Economic Events
Economic Calander | ||||
Monday, 28 March 2022 | ||||
Time | Currency | Event | Forecast | Previous |
16:30 | GBP | BoE Gov Bailey Speaks |
|
|
18:00 | USD | Goods Trade Balance (Feb) |
| -107.57B |
18:00 | USD | Retail Inventories Ex Auto (Feb) |
| 1.80% |
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, 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
