World Market – Headlines
The euro is wallowing in worries about Ukraine sanctions, while the Australian dollar is remaining tranquil ahead of the RBA meeting.
Asia stocks are hovering near 5-week highs, while the euro is on the defensive.
Oil prices are rising as supply concern remains.
The Indian rupee is set to be little changed against the dollar, as crude oil prices increased on the prospect of additional penalties against Russia and an increase in risk appetite.
The rupee is expected to open at 75.50-75.55 against the dollar, down from 75.54 yesterday. The rupee has risen to its highest level in more than a month, thanks to corporate dollar inflows, a pick-up in exporter hedging, and an encouraging risk appetite.
The euro languished near a one-week low against the dollar on Tuesday amid talk of more sanctions against Moscow following international outrage over Ukraine civilian killings.
After falling to a low of $1.0960 in the previous session for the first time since March 28, Europe’s single currency was barely changed at $1.0975. It had just days earlier hit a one-month high of $1.1185 on heightened hope for a resolution to the Ukraine conflict.
The dollar index rose to near a one-week high of 99.083 overnight as the euro’s difficulties lifted it. It was 98.949 at the time.
After retreating from a multi-year high of 125.105 on March 28, the dollar fell 0.20 percent to 122.515 yen, broadly matching changes in long-term U.S. Treasury yields.
The Australian dollar remained unchanged at$0.7541, close to Monday’s high of $0.75565, a level not seen since July 6.
The Japanese yen was trading at 122.72 per dollar, down from depths below 122 recorded versus the greenback last week.
The market is projected to open higher, with a rise of 89 points on the SGX Nifty, indicating a positive start for the broader index in India.
On Monday, the BSE Sensex rose 1,335 points to 60,612, while the Nifty50 rose 383 points to 18,053 and formed a bullish candle on the daily charts, indicating that Dalal Street is in a good mood.
The pivot charts show that the important support level for the Nifty is 17,858, followed by 17,663. The important resistance levels to watch for if the index rises are 18,182 and 18,310.
On Tuesday, Asian markets rose to their highest level in almost a month, boosted by wide Wall Street advances, while the euro remained stuck near a one-week low versus the dollar amid talk of fresh penalties against Russia.
In early Tuesday trade, Asian stocks gained as investors awaited the Reserve Bank of Australia’s latest rate announcement.
The Nikkei 225 index rose 0.4 percent in Japan, with shares of SoftBank Group and Fanuc each rising more than 1%.
The Kospi index in South Korea rose 0.12%. Australia’s stocks increased as well, with the S&P/ASX 200 index rising 0.18 percent.
On Wall Street, the S&P 500 rose 0.81 percent overnight to 4,582.64. The Dow Jones Industrial Average rose 103.61 points to 34,921.88, up 0.3 percent. The Nasdaq Composite, which is heavily weighted in technology, outperformed, rising 1.9 percent to 14,532.55.
MSCI’s broadest index of Asia-Pacific stocks outside of Japan rose 0.16 percent to 601.3, its highest level since February 24. The benchmark has been down 4% this year, pulled down by steep falls in Chinese stocks.
Gold prices fell 0.1 percent to $1,929.6 per ounce, with spot gold down 0.1 percent.
Oil futures surged in early trading on Tuesday, as the prospect of further penalties in response to suspected Russian army war crimes in Ukraine heightened fears about supply disruptions, while Iran nuclear talks remained stuck.
Brent oil futures were up $1.58, or 1.5 percent, to $109.11 a barrel, while WTI futures were up $1.61, or 1.6 percent, to $104.89 a barrel.
On Tuesday morning, oil prices were higher in Asia, with international benchmark Brent crude futures up 1.91 percent to $109.58 per barrel. Crude futures in the United States rose 1.85% to $105.19 a barrel.
Futures were up more than 3% on Monday, owing to the potential of more penalties against Russia and a break in Vienna discussions to resurrect the Iran nuclear deal, which might result in more Iranian barrels entering the market. The discussions were halted because of the United States, according to Iran.
Tuesday, Apr 05, 2022
RBA Interest Rate Decision (Apr)
Services PMI (Mar)
Composite PMI (Mar)
ISM Non-Manufacturing PMI (Mar)
Anushree Saxena (Intern)
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