30 March 2022
World Market – Headlines
Peace hopes in Ukraine keep the euro afloat.
Wall Street is rallying in the hopes of resolving the situation between Russia and Ukraine.
Despite “productive” Ukraine-Russia discussions, oil prices climb due to supply constraints.
Currency
Indian Rupee
After Russia stated it would reduce military activities surrounding Ukraine’s capital, the Indian rupee is projected to strengthen versus the US dollar, as the safe-haven dollar sank and equities rose.
The rupee is expected to open at 75.70-75.75, down from 75.98 the day before. On prospects of a cease-fire between Ukraine and Russia, Brent crude dipped below $105 per barrel yesterday. Following discussions in Turkey, Moscow announced that it will reduce military activity surrounding Kyiv, Ukraine’s capital, and another northern city. Officials from Russia said the talks had progressed to a practical stage.
Other Currencies
The dollar was kept on the back foot on Wednesday as the euro rose on prospects of a breakthrough in Russia-Ukraine peace negotiations, while the yen held steady despite the Bank of Japan’s renewed attempts to keep bond yields low.
The euro, which has been pounded in recent weeks by concerns about the economic consequences of the Ukraine conflict as well as fears that the unrest could move west, hit a two-week high of $1.1137 overnight before falling back to $1.1091 in Asia.
On the pound, the common currency jumped through its 200-day moving average to record a three-month high of 84.81 pence, while Russia’s rouble soared to a one-month high of 83.50 pence.
The mood was also favorable for risky currencies like the Australian and New Zealand dollars. In early trade, they were steady slightly below recent highs, with the Australian dollar at $0.7512 and the New Zealand dollar at $0.6946.
Meanwhile, the yen is battling for a floor of around 123 per dollar.
Equity
Indian Equity
The Indian stock market is set to open in the green, with the SGX Nifty indicating a gap-up opening with a projected gain of 159 points.
On the daily charts, the BSE Sensex rose 350 points to 57,944, while the Nifty50 rose 103 points to 17,325 and created a small-bodied bullish candle that resembled a Hanging Man pattern formation.
The pivot charts show that the important support level for the Nifty is 17,259, followed by 17,194. The important resistance levels to watch for if the index rises are 17,367 and 17,410.
Other Markets
On Tuesday, U.S. markets gained, with the Dow and S&P gaining for the fourth straight day, as investors hoped for progress toward a compromise to end the conflict between Russia and Ukraine.
The Dow Jones Industrial Average increased by 338.3 points, or 0.97 percent, to 35,294.19, the S&P 500 increased by 56.08 points, or 1.23 percent, to 4,631.6, and the Nasdaq Composite increased by 264.73 points, or 1.84 percent, to 14,619.64.
The S&P energy index was the sole dropping sector after falling more than 2% on Monday, as crude prices fell more than 1%.
The best-performing sector was real estate, which gained about 3% on the day, indicating that some investors believe inflation will persist but that there will be no recession. It was the group’s highest one-day percentage rise since Jan. 28.
Oil
On prospects of progress in peace talks between Russia and Ukraine, oil prices rose on Wednesday, recovering losses from the previous session and delivering a fresh warning that supply is tight, as data showed U.S. crude stocks decreased dramatically last week.
Brent crude futures hit a high of $112.78 shortly after the market opened, and were up $1.35, or 1.2 percent, at $111.58, erasing a 2% loss the previous session.
WTI crude futures in the United States rose $1.29, or 1.2 percent, to $105.53 a barrel, reversing a 1.6 percent dip on Tuesday.
Economic Events
Economic Calendar | ||||
Wednesday, Mar 30, 2022 | ||||
Time | Country | Event | Forecast | Previous |
11:30 | GBP | Current Account (Q4) | -15.6B | -24.4B |
13:30 | EUR | ECB President Lagarde Speaks |
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13:55 | EUR | German Buba Mauderer Speaks |
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17:45 | USD | ADP Nonfarm Employment Change (Mar) | 450K | 475K |
18:00 | USD | GDP (QoQ) (Q4) | 7.10% | 2.30% |
20:00 | USD | Crude Oil Inventories | -1.022M | -2.508M |
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.
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