29 March 2022
World Market – Headlines
BOJ defends yield target, putting the yen on the ropes.
Investors are flocking to China as oil prices plummet; the yen is hovering near a six-year low.
Oil prices plummet as expectations for peace in Ukraine fade, and China’s need raises concerns.
Currency
Indian Rupee
The Indian rupee is projected to appreciate against the dollar today, owing to a drop in crude oil prices due to concerns over demand.
The rupee is expected to open around 75.98-76.02, down from 76.16 the day before. Brent crude was down more than 1% in Asia, following a than 7% drop the day before. It’s down from last week’s high of near $124, owing to concerns about energy consumption amid further Chinese lockdowns and surging inflation. Meanwhile, Ukraine is hoping that the first face-to-face peace negotiations with Russia in almost two weeks, scheduled for today, will result in a truce.
Other Currencies
The yen struggled to regain its footing on Tuesday after its worst session in 16 months, as the Bank of Japan tries to keep bond yields low at a time when they are increasing quickly elsewhere.
Overnight, the Japanese yen plummeted as much as 2.4 percent to 125.10 per dollar, its lowest level since August 2015, before recovering to 124.24 in Tokyo’s tumultuous morning trade.
The dollar was largely unchanged overseas, maintaining the euro at $1.0988 and halting the Australian dollar’s recent advance at $0.7483.
The New Zealand dollar was somewhat weaker at $0.6889, and sterling was under pressure at $1.3081, among other major currencies.
The dollar index, which measures the value of the dollar against a basket of currencies, was at 99.159, up from previous sessions’ lows of about 98.8.
The Australian dollar was trading at $0.7490, somewhat down from previous highs of $0.75.
Bitcoin jumped 6.7 percent to $47,914.35 overnight, breaking through the critical $45,000 milestone and wiping out its losses for 2022. It was over 6% higher at $47,514 at the time of writing.
Equity
Indian Equity
The Indian stock market is projected to open in the green, with SGX Nifty trends indicating a gap-up opening of 110 points for the broader index in India.
On the daily charts, the BSE Sensex rose 231 points to 57,593, while the Nifty50 rose 69 points to close at 17,222, forming a modest bullish candle that resembled a Hammer pattern formation.
The pivot charts show that the Nifty’s main support level is 17,072.23, followed by 16,922. The important resistance levels to watch if the index rises are 17,303 and 17,385.
Other Markets
Following a drop in oil prices overnight, stocks in Asia-Pacific climbed. In the meantime, Bitcoin rocketed through a major mark, while the yen continued to fall.
The Hang Seng index in Hong Kong surged 0.77 percent in early trade, led by gains in gambling and technology firms. Property stocks, on the other hand, went against the trend, with Sunac falling nearly 14% and Shimao down 4.6 percent.
Mainland Shanghai’s composite index rose 0.31 percent, while Shenzhen’s component rose 0.51 percent.
The Nikkei 225 in Japan was up 0.8 percent, while the Topix was up 0.69 percent. Sony increased by 1.6 percent, while SoftBank Group increased by 1.89 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 0.48 percent.
The Dow Jones Industrial Average increased by 94.65 points, or 0.27 percent, to 34,955.89, the S&P 500 increased by 32.46 points, or 0.71 percent, to 4,575.52, and the Nasdaq Composite increased by 185.60 points, or 1.31 percent, to 14,354.90.
Oil
On Tuesday, U.S. oil futures fell further, extending losses from the previous day, as Ukraine and Russia prepared for peace talks and on fears of a decline in gasoline consumption in China following the financial hub of Shanghai’s closure to combat a surge in COVID-19 cases.
Brent crude futures were trading at $111.41 a barrel, down $1.07, or 1.0 percent, after falling as low as $109.97.
In early trading, U.S. West Texas Intermediate (WTI) crude futures touched a low of $103.46 and were trading at $105.17, down 79 cents, or 0.8 percent. On Monday, both benchmark contracts fell roughly 7%.
Economic Events
Economic Calander | ||||
Tuesday, Mar 29, 2022 | ||||
Time | Country | Event | Forecast | Previous |
9:50 | JPY | BOJ Deputy Governor Amamiya Speaks |
|
|
11:30 | GBP | Nationwide HPI (MoM) |
| 1.70% |
11:30 | EUR | GfK German Consumer Climate (Apr) | -14 | -8.1 |
17:00 | EUR | ECB McCaul Speaks |
|
|
19:30 | USD | CB Consumer Confidence (Mar) | 107 | 110.5 |
19:30 | USD | JOLTs Job Openings (Feb) | 11.000M | 11.263M |
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 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
