31 March 2022
World Market – Headlines
The euro is at a one-month high, while the yen is on track to have its worst month since 2016.
The stock market boom has fizzled, and bond markets are pondering the threats to the US economy.
Oil prices have dropped more than $5 a barrel as Biden considers releasing large reserves.
Currency
Indian Rupee
The Indian rupee is projected to strengthen against the US dollar as crude oil prices fall and the dollar index falls to its lowest level in over a month.
The rupee is expected to open at 75.75 to the dollar, up from 75.91 the day before. The June Brent crude contract was down more than 3.7 percent at $107.32 a barrel, according to Reuters, which reported that US President Joe Biden is considering releasing up to 180 million barrels from reserves over several months.
The rupee has fallen this quarter, but it has held up well in the face of the Fed’s threat, the danger of rising oil prices, and foreign equity outflows. The Reserve Bank of India has managed to control currency volatility and speculation. To ensure that its forward book positions do not damage the dollar, the central bank has recently used sell/buy swaps.
Other Currencies
On Thursday, the euro reached a one-month high versus the dollar, after rallying on optimism that the Ukraine conflict will de-escalate, while the yen remained on track for its worst month since November 2016.
The euro was trading at $1.1175, its highest level in a month, after gaining 1.7 percent.
The pound was constant at $1.3143, and the Australian currency was firm at $0.7509, holding on to its 3.3 percent gains from earlier this month but trying to push higher.
Bitcoin was trading at $47,240 in cryptocurrency markets, not far off its year-to-date high of $48,234 set earlier this week.
The dollar index, which measures the value of the greenback against a basket of currencies, was at 97.767 as it tries to rebound from earlier this week’s lows of above 99.
The Japanese yen was trading at 122.23 per dollar, still higher than earlier this week’s highs of 124 against the greenback. The Australian dollar was trading at $0.7505, having mostly traded in a band of $0.747 to $0.753 this week.
Equity
Indian Equity
The Indian stock market is predicted to open in the green, as the broader index in India is expected to open with a gain of 29 points, according to SGX Nifty trends.
The BSE Sensex rose 740 points to 58,684, while the Nifty50 rose 173 points to 17,498 on March 30, breaking out of its consolidation zone from the previous week and generating a small-bodied bullish candle on the daily charts.
The pivot charts show that the Nifty’s main support level is 17,416, followed by 17,334. The important resistance levels to watch if the index rises are 17,551 and 17,605.
Other Markets
On Wednesday, the advance in U.S. and European stocks slowed as investors weighed economic and geopolitical risks, while oil prices rose more than $2 on the potential of additional Russian sanctions.
The Dow Jones Industrial Average finished 0.19 percent lower, the S & P 500 0.63 percent lower, and the Nasdaq Composite 1.2 percent lower.
The Euro STOXX 600 index in Europe fell 0.4 percent, while the MSCI world equity index, which covers stocks in 50 nations, was down 0.32 percent.
The Shanghai composite fell 0.26 percent in morning trade, while the Shenzhen component fell 0.652 percent.
The Hang Seng index in Hong Kong also declined by 0.59 percent. Baidu’s stock in the city dropped more than 4% after the company was added to a list of firms that could be delisted from US exchanges by the Securities and Exchange Commission.
In other markets, Japan’s Nikkei 225 index was nearly unchanged, while the Topix index was slightly altered. The Kospi index in South Korea increased by 0.48 percent.
Meanwhile, Australia’s S&P/ASX 200 index rose 0.39 percent.
Oil
On Thursday morning, oil futures plummeted more than $5 a barrel on reports that the Biden administration is considering releasing 1 million barrels of oil per day from strategic reserves for several months to cool surging petroleum prices.
Brent crude prices fell $4.71, or 4.2 percent, to $108.58 a barrel, while US West Texas Intermediate futures fell $5.45, or 5%, to $102.74 a barrel.
The news comes as oil stocks in the United States fell by 3.4 million barrels in the week ending March 25, above expectations of a 1 million barrel drop, while implied demand for gasoline and distillates fell as well.
International standard Brent crude futures are currently trading at $109 per barrel, down 3.92 percent. Crude futures in the United States fell 4.62 percent to $102.84 a barrel.
Economic Events
Economic Calendar | ||||
Thursday, Mar 31, 2022 | ||||
Time | Country | Event | Forecast | Previous |
11:30 | GBP | GDP (QoQ) (Q4) | 1.00% | 1.00% |
12:30 | EUR | ECB’s Enria Speaks |
|
|
13:25 | EUR | German Unemployment Change (Mar) | -20K | -33K |
18:00 | USD | Initial Jobless Claims | 197K | 187K |
Prepared by
Anushree Saxena (Intern)
[convertkit form=3104091]
[email-subscribers-form id=”2″]
[convertkit_content tag=”2998537″][/convertkit_content]
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
