World Markets

World Markets11 April  2022  

World Market – Headlines  

  • The euro gets a boost from Macron’s presidency ahead of the ECB meeting.

  • After statistics showed China’s producer inflation soaring, Chinese stocks led to Asia’s losses.

  • Oil prices are falling as a result of China’s lockdowns, and reserves are being released. 

World Markets

Currency

Indian Rupee

USD/INR Spot (75.95): On Friday, the USD/INR began at 75.97, nearly unchanged from the previous day’s finish. Following the RBI policy announcement, the pair traded in both directions, reaching a low of 75.71 before rebounding towards the starting levels of 76.0100 and closing at 75.8950.

The repo rate was held at 4.00 percent by the RBI. The RBI has now decided to prioritize inflation overgrowth, indicating that it will gradually drain excess liquidity from the economy to keep inflation under control. The implementation of the standing deposit facility (SDF) as the primary tool for absorbing excess liquidity is a step toward restoring pre-pandemic liquidity management.

Crude Oil (Brent CMP: 100.10) fell once again as consumers revealed plans to release crude from strategic reserves, as well as news of the Chinese closure. Friday’s US stock market closed higher (+0.40%), but Asian stocks were slightly down as investors awaited China’s inflation report today.

Technically, intraday support for the USD/INR is between 75.7700 and 75.6850, and a break below these levels will lead the pair to the 75.45-75.50 zone. Climbs above 76.0450 signal a further up move towards 76.1550 levels, while rises below 76.0450 imply a further up move towards 76.1550 levels.

75.7700 to 76.1550 is the day’s range.

Other Currencies

The euro rose sharply to begin the week on investor relief that incumbent Emmanuel Macron had won the first round of voting in the French presidential race, while other currencies moved just a little ahead of central bank meetings in Europe, Canada, and New Zealand.

In the early hours of the Asian session, the euro briefly rose to $1.0955 before finishing 0.15 percent higher than Friday’s close of $1.0890. The Sterling and the yen were also firmer.

On Friday, the dollar index surpassed 100 for the first time in over two years, and it was stable at 99.805 in morning trade. The dollar was strong against the Japanese yen, buying 124.32 yen.

The New Zealand dollar fell 0.2 percent to $0.6836, while the Canadian dollar remained stable at C$1.2583.

In other currency markets, the Australian dollar fell 0.2 percent to $0.7447 as gains in commodity currencies faded further due to a drop in export prices. The value of the pound remained unchanged at $1.3026.

Equity

Indian Equity

The Indian market is expected to open in the red, with trends on the SGX Nifty indicating a 36-point drop for the broader index.

The BSE Sensex increased by more than 400 points to 59,447, while the Nifty50 increased by 145 points to 17,784 and successfully defended the 17,600 level, forming a bullish candle on the daily charts with closing levels higher than opening levels. On the weekly charts, a Doji pattern formed as the closing levels were near the opening levels. During the week, the index gained six-tenths of a percent.

The pivot charts show that the Nifty’s main support level is 17,642, followed by 17,500. The important resistance levels to watch if the index rises are 17,884 and 17,985.

Other Markets

Asia-Pacific stocks were neutral Monday morning as investors reacted to March Chinese inflation data.

Asian shares slipped on Monday ahead of a week thronging with central bank meetings and U.S. inflation data, while the euro eked out a gain on relief the far right did not win the first round of the French presidential elections.

Markets were cautious, with MSCI’s broadest index of Asia-Pacific equities outside Japan slipping 0.1 percent. The Nikkei 225 index of Japan fell 0.6 percent after falling 2.6 percent the previous week.

Both the S&P 500 stock futures and the Nasdaq stock futures fell 0.2 percent in early trading. JP Morgan, Wells Fargo, Citi, Goldman Sachs, and Morgan Stanley are all set to report earnings this week.

Following the announcement of the data, Chinese stocks led regional losses, with the Shanghai composite down 1.19 percent and the Shenzhen component down 2.158 percent.

The Hang Seng index in Hong Kong fell 2.21 percent. Nio, a Chinese electric car manufacturer, saw its Hong Kong-listed shares plummet more than 7% after the company declared a production halt owing to difficulties at its supply chain partners as a result of Covid.

The Topix index fell by 0.48 percent.

The Kospi index in South Korea fell 0.26 percent.

The S&P/ASX 200 index in Australia defied the general trend.

Following the EU’s embargo on Russian coal imports, thermal coal was the standout winner in commodity markets last week, rising about 13%.

Gold recorded a 1.1 percent weekly increase, but has been hampered by the massive spike in bond yields, and was the last level at $1,944 per ounce.

OIL

Oil prices fell $2 a barrel in early Asian trading on Monday, extending a two-week losing streak after world customers revealed plans to release a record volume of crude and oil products from strategic stores, while China’s lockdowns remained in place.

Brent crude was down $2.04, or 2%, to $100.74 a barrel, while West Texas Intermediate crude was down $1.94, or 2%, to $96.32. Brent oil fell 1.5 percent last week, while US oil fell 1%. The benchmarks have been at their most volatile level since June 2020 for several weeks.

The international benchmark Brent crude futures fell 2.31 percent to $100.41 a barrel in the morning of Asian trading hours. Crude futures in the United States fell 2.36 percent to $95.94 a barrel.

Economic Events

Economic Calendar

Monday, Apr 11, 2022

Time

Country

Event

Forecast

Previous

11:30

GBP

Monthly GDP 3M/3M Change

 

1.10%

11:30

GBP

Manufacturing Production (MoM) (Feb)

0.30%

0.80%

12:30

JPY

BoJ Governor Kuroda Speaks

 

 

15:00

EUR

German 12-Month Bubill Auction

 

-0.56%

19:00

USD

FOMC Member Bostic Speaks

 

 

 

 

 

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

https://www.reuters.com/

https://in.investing.com/