19 April 2022
World Market – Headlines
Nothing can stop the yen from falling to a new 20-year low.
Bond yields rise on growth concerns, sending Wall Street lower.
Despite a decline in Libyan supply, oil prices have remained stable, and Shanghai is set to reopen.
Currency
Indian Rupee
USD/INR Spot reference 76.26: The USD/INR gapped up on Monday, beginning at 76.400 vs last week’s close of 76.1750. The pair briefly rose to 76.43 levels before spending the majority of its time trading between 76.33 and 76.40 levels. After fixing in the previous session, the market saw rapid selling, dragging the pair to a low of 76.2100 before ending at 76.2575.
Broad Market Snapshot: US equities closed slightly lower (-0.11%) on Monday, owing to concerns about the impact of the Russia/Ukraine war on business results this week, as well as the impact of rising inflation on firm financials. With inflation in the United States reaching a four-decade high, the Federal Reserve is scrambling to tighten policy and is expected to begin hiking rates in 50-basis-point increments. China’s first-quarter GDP exceeded estimates, expanding by 4.80% year on year (4.50 percent exp). Markets are watching to see how the Shanghai lockdowns affect output and commerce; if they spread, China’s official 5.50 percent GDP target will become more difficult to achieve. This will eventually affect global equity markets as well.
USD/INR Price Action and Technicals: Intraday resistance near 76.4300 may stifle upside attempts, allowing a decline to 76.1150 and then 76.00 levels. After achieving a high of 76.4300 yesterday, the price action and lower close suggest that the price may drop further into the 76.00 regions. An unexpected advance above 76.4300 might push it towards the next strong resistance level near 76.55, reducing the chances of an immediate corrective dip.
The day’s range is 76.1050 to 76.4300.
Other Currencies
On Tuesday, the Japanese yen fell to a 20-year low versus the dollar, aided by high US Treasury yields and potentially better-than-expected US economic data this week.
In early trade, the dollar surged 0.37 percent against the yen to 127.44 yen, its best level since May 2002.
The dollar was also robust versus most other currencies, with the dollar index trading at100.8, barely off its two-year high of 100.86 sets on Monday.
The euro was trading at $1.0776, close to a two-year low of $1.0756 set last week.
The recent hostilities in Ukraine did not help the sterling, which fell to $1.3006.
The Australian dollar was trading at $0.7355, up from a one-month low on Monday.
After hitting a one-month low of $38,547 on Monday, Bitcoin was able to regain its footing, trading at $40,800 on Tuesday.
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 27 points, according to SGX Nifty trends.
On the daily charts, the BSE Sensex slid 1,172 points, or 2%, to 57,167, while the Nifty50 fell 302 points, or 1.73 percent, to 17,174, forming a Doji candle, suggesting indecisiveness among bulls and bears.
According to pivot charts, the Nifty’s main support level is 17,082, followed by 16,990. The important resistance levels to watch for if the index rises are 17,252 and 17,330.
Other Markets
On a tumultuous trading day on Monday, Wall Street closed the day lower, while Treasury yields soared as investors weighed excellent results against the impact of Russia’s invasion of Ukraine on global growth.
The Dow Jones Industrial Average fell 39.54 points (0.11 percent) to 34,411.69, while the S&P 500 remained unchanged at 4,391.69. The Nasdaq Composite Index fell 0.14 percent to 13,332.36 points.
The Hang Seng index in Hong Kong led losses among the region’s main markets, dropping approximately 2.5 percent after resuming trading after Friday and Monday’s holidays.
Mainland Chinese stocks struggled to gain ground as well, with the Shanghai composite down 0.107 percent and the Shenzhen component falling 0.107 percent.
In Japan, the Nikkei 225 index rose 0.33 percent, while the Topix index rose 0.53 percent. The Kospi in South Korea increased by 0.98 percent.
The S&P/ASX 200 index rose 0.73 percent in Australia.
OIL
Oil prices were little changed on Tuesday, after increasing 1% the day before, as Libyan exports were halted and Chinese manufacturers prepared to reopen facilities following the almost three-week COVID-19 closure in Shanghai.
Brent crude prices were up 21 cents, or 0.2 percent, to $113.37 a barrel, while WTI crude futures were down 2 cents at $108.19 a barrel.
With international benchmark Brent crude futures down 0.31 percent to $112.81 per barrel in the morning of Asia trading hours, oil prices were down. Crude futures in the United States fell 0.38 percent to $107.80 a barrel.
Economic Events
Economic Calendar | ||||
Tuesday, Apr 19, 2022 | ||||
Time | Country | Event | Forecast | Previous |
10:00 | JPY | Industrial Production (MoM) (Feb) |
| 0.10% |
18:00 | CAD | Foreign Securities Purchases (Feb) |
| 13.49B |
18:00 | USD | Building Permits (Mar) | 1.825M | 1.865M |
20:30 | NZD | GlobalDairyTrade Price Index |
| -1.00% |
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
