World Markets

World Markets

4 April  2022  

World Market – Headlines  

  • The euro has been dragged down by talk of new Russian penalties.

  • Asia stocks begin cautiously, while Treasury rates continue to rise.

  • Oil continues to lose money due to the release of reserves and the Yemen cease-fire.

Prashanti Forex - Home

Currency

Indian Rupee

The Indian rupee is projected to fall against the dollar today after strong employment data in the United States bolstered predictions that the Federal Reserve will raise interest rates swiftly.

The rupee is expected to open around 75.90 to the dollar when trading resumes following a three-day weekend, down from 75.79 on Thursday. The rupee had ended near its best level in almost a month, aided by a drop in crude oil prices and an increase in exporters’ hedging activities. Brent crude fell about 14% last week, its lowest level in almost two years, on concerns about the demand outlook and excitement about Russia-Ukraine talks.

Other Currencies

The dollar got off to a strong start this week as Treasury yields surged on predictions of a flurry of interest rate hikes in the United States, while rumors of Russian gas sanctions kept the euro close to its 2022 lows.

Worries over the economic impact of the Ukraine conflict have impacted the euro, which recently bought $1.1047, not far from its nearly two-year low of $1.0806.

The yen has been pulled down below 122 per dollar, last trading at122.33, after stabilizing last week after taking a beating during March on expectations of increasing U.S. interest rates against anchored Japanese yields. The Japanese yen was trading at 122.41 per dollar, up from levels above 124 recorded last week.

The Australian dollar last traded at $0.7495, unchanged ahead of a central bank meeting on Tuesday, while the New Zealand dollar fell to $0.6905.

The value of the pound was hovering at $1.3155.

The dollar was steady at 122.63 yen, not far off from its seven-year high of 125.10. The euro fell to $1.1041 and could fall more if the EU takes action to halt Russian gas exports, which Russia refers to as a “special operation.”

The dollar index was last seen at 98.617, after swinging between 97.681 and 99.377 previously.

Equity

Indian Equity

The market is set to open in the red, with the SGX Nifty indicating a 31-point drop for the broader index in India.

On the daily and weekly charts, the BSE Sensex rose 708 points to 59,277, while the Nifty50 rose 206 points to 17,670, forming a bullish candle. The index increased by 3% in the previous week.

The pivot charts show that the Nifty’s main support level is 17,494, followed by 17,318. The important resistance levels to watch if the index rises are 17,775 and 17,880.

Other Markets

On Monday, Asian stock markets were cautious as fresh penalties against Russia over its invasion of Ukraine were discussed, while bond markets continued to warn of a rough landing for the US economy as short-term yields soared.

Due to a Chinese holiday, trade was sluggish, and MSCI’s broadest index of Asia-Pacific equities outside Japan fell 0.1 percent.

S&P 500 stock futures were down 0.2 percent and Nasdaq stock futures fell 0.3 percent.

The Hang Seng index in Hong Kong led advances among major Asia-Pacific markets on Monday, as Chinese technology stocks in the city surged.

The Kospi index in South Korea fell 0.33 percent. The S&P/ASX 200 index increased 0.43 percent in Australia.

Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 0.4 percent.

The Nikkei 225 index in Japan rose by a fraction of a percent as shares of conglomerate SoftBank Group rose 3.76 percent. The Topix index rose 0.16 percent today.

The Dow Jones Industrial Average gained 139.92 points, or0.4%, to34,818.27, the S&P 500 jumped 15.45 points, or 0.34 percent, to4,545.86, and the Nasdaq Composite gained 40.98 points, or 0.29 percent, to 14,261.50.

Oil

Oil prices fell further on Monday as investors awaited the release of supplies from consuming countries’ strategic reserves, while a truce in Yemen could ease Middle East supply disruption concerns.

Brent crude futures were down 79 cents, or 0.8 percent, to $103.60 a barrel, while West Texas Intermediate crude was down 82 cents, or 0.8 percent, to $98.45 a barrel. When the markets opened on Monday, both contracts were down $1.

According to industry sources, oil and gas condensate production in the world’s No. 2 exporter decreased to 11.01 million barrels per day (bpd) in March, down from an average of 11.08 million bpd in February. Following Russia’s invasion of Ukraine, Western sanctions and buyer reluctance have harmed Russian oil refining and exports. The loss of Russian oil supplies is estimated to be between 1 million and 3 million barrels per day.

Brent was last quoted at $103.53, down 86 cents, while U.S. crude was down 80 cents to $98.47.

Economic Events

Economic Calendar

Monday, Apr 04, 2022

Time

Country

Event

Forecast

Previous

11:30

EUR

German Trade Balance (Feb)

9.6B

9.4B

14:35

GBP

BoE Gov Bailey Speaks

 

 

15:30

EUR

Eurogroup Meetings

 

 

19:30

USD

Factory Orders (MoM) (Feb)

-0.50%

1.40%

 

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

https://www.reuters.com/

https://in.investing.com/