7 April 2022
World Market – Headlines
The dollar is rising as the Federal Reserve prepares to intensify its anti-inflationary efforts.
Japan’s markets are down about 2%, and Samsung expects a 50% increase in first-quarter profit.
Oil gains $1 as a result of the emergency oil flow, which is considered a band-aid.
Currency
Indian Rupee
USD/INR Spot (75.91): Yesterday, USD/INR had a gap up opening at 75.5150 which was near the day low of 75.50 levels. Due to negative sentiment in the global equity market, the dollar outflow of Carlyle SBI card’s stake sale slowly dragged the pair up to 75.7850 and finally closed at 75.7550 levels.
The global Equity market fell for the second day after the FED gave more guidance on how fast it will tighten monetary policy to fight rising inflation in the US economy. The FED’s release of its minutes meeting indicates that they may consider a larger hike than the usual 25 basis points.
Technically USD/INR intraday resistance is near 75.95 and 76.0750 levels. It appears more likely that it could hold below the above resistance zone and move towards short-term support of 75.82 then 75.6150 levels.
The range for the day: 75.6150 to 76.0750
Other Currencies
On Thursday, the dollar held near a two-year high versus a basket of currencies, as meeting minutes revealed the Federal Reserve was planning aggressive action to combat inflation.
The US dollar index, which compares the greenback to six major currencies, hit a high of 99.778 overnight and stayed steady at 99.575 in early Asia trade.
As oil prices fell, commodity currencies retreated from recent highs, and the euro fell to a one-month low of $1.0874.
Overnight, the Australian dollar fell by around 0.8 percent to $0.7503.
The kiwi was trading at $0.6905 at the time.
The yen was lingering near a one-week low of 123.64 per dollar due to the strengthening greenback.
The price of sterling was set at $1.3076.
As a result of widespread selling of equities and other risk assets as higher interest rates loom, bitcoin slid 5% overnight to $43,000.
Equity
Indian Equity
The market is projected to open in the red, with the SGX Nifty indicating a negative opening for the broader index, with a 92-point drop.
On the daily charts, the BSE Sensex sank 566 points to 59,610, while the Nifty50 fell 150 points to 17,808, forming a small body bearish candle.
The pivot charts show that the Nifty’s important support level is 17,758, followed by 17,708. The important resistance levels to watch if the index rises are 17,879 and 17,951.
Other Markets
Japan led Asia-Pacific market falls, although Hong Kong stocks climbed on Thursday after two days of Wall Street declines.
In Japan, the Nikkei 225 sank 1.69 percent, while the Topix fell 1.83 percent. Fast Retailing’s stock fell 2.84 percent.
The Hang Seng index in Hong Kong increased by 0.55 percent, while the Hang Seng tech index increased by 1.12 percent.
Stocks on the Chinese mainland were mixed. The Shanghai composite was 0.17 percent higher, while the Shenzhen component was 0.18 percent lower.
The S&P/ASX 200 index in Australia was down 0.33 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 0.33 percent.
The Dow Jones Industrial Average fell 144.67 points to 34,496.51, or 0.42 percent.
The S&P 500 index dropped 0.97 percent to 4,481.15.
After losing roughly 2.3 percent on Tuesday, the Nasdaq Composite fell another 2.22 percent to 13,888.82.
Oil
Oil prices recovered some of their losses on Thursday after falling more than 5% to a three-week low the day before after consuming nations declared a massive release of oil from emergency stockpiles to compensate for supply losses from Russia.
Brent crude prices increased $1.32, or 1.3 percent, to $102.39 a barrel, while WTI crude futures rose $1.18, or 1.2 percent, to $97.41 a barrel in the United States.
Member countries of the International Energy Agency decided to release 60 million barrels in addition to the 180 million barrels pledged by the US last week to help down prices in a tight market following Russia’s invasion of Ukraine.
Economic Events
Economic Calendar | ||||
Thursday, Apr 07, 2022 | ||||
Time | Country | Event | Forecast | Previous |
17:00 | EUR | ECB Publishes Account of Monetary Policy Meeting |
|
|
17:45 | GBP | BoE MPC Member Pill Speech |
|
|
18:00 | USD | Initial Jobless Claims | 200K | 202K |
18:30 | RUB | Central Bank reserves (USD) |
| 604.4B |
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 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
