World Markets

World Markets22 April  2022  

World Market – Headlines  

  • Yen and yuan suffer as Fed eyes faster hikes

  • Asia-Pacific stocks slide as major indexes in the region fall at least 1% each

  • Oil prices on track for near 4% weekly decline on demand concerns

Prashanti Forex - HomeForex Insights

USD/INR Spot reference{76.22}:

Yesterday, USD/INR had a gap up opening at 76.2800 against previous day close of 76.2100.After opening the pair briefly went to 76.3550 levels on account of short covering where selling emerged . The pair touched a low of 76.0950 due to exporters covering, dollar weakness globally and strong positive sentiments in the equity market. During the day the pair swung both sides and in the last hour trading session, short covering finally pushed the pair again higher at 76.2450 levels before closing at 76.1450.

Broad Market Snapshot:

Dow Jones plunged by 1 % and US 10 year treasury yields went up to near 3% after Powell comments in an IMF panel discussion for interest rate hike. Powell said that “50 basis points will be on the table for the May 2022 meeting” .After two consecutive weeks of declines, EUR/USD jumped on ECB interest rate hike support beyond 1.09 but fell short of testing first intermediate resistance around 1.0954. Yesterday’s move in EUR/USD was abrupt and temporary and the currency pair is currently trading at 1.08 areas.

Over the past six weeks, oil price movements are no longer unidirectional. Last week we saw US Oil production increase to a new high since May 2020. A real bearish bet in Oil requires either a sharp increase in production in the US or OPEC countries or a dramatic fall in oil demand globally.

USD/INR Price Action and Technicals:

Intraday supports are near 76.18, 76.0950 and then at 76.00. Oversold indicators in the short term chart suggest that there is a chance for a minor reversal till 76.3550 and 76.4275 levels. It must stay below 76.1800 to start a bearish move again towards 76.0950 and 76.00 areas. Last three days price action has turned the momentum bearish in the daily chart and daily close below 75.95 hints at the possibility of further plunge towards 75.77 then 75.4550 area.

Range for the day: 76.00 to 76.4275

Equity Insights

Indian Equity

The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 187 points.

The BSE Sensex jumped nearly 900 points to close above 57,900 levels, while the Nifty50 surged 256 points to 17,393 and formed a bullish candle on daily charts, indicating positive mood in the market.

As per pivot charts, the key support level for the Nifty is placed at 17,267, followed by 17,142. If the index moves up, the key resistance levels to watch out for are 17,466 and 17,540..

Other Equity

Shares in Asia-Pacific fell in Friday morning trade as investors watch for market reaction to overnight remarks from U.S. Federal Reserve Chairman Jerome Powell.

The Nikkei 225 in Japan led losses among the region’s major markets, declining 1.99% as shares of conglomerate SoftBank Group dropped more than 3%. The Topix index shed 1.39%.

Hong Kong’s Hang Seng index pared some losses after earlier falling more than 2%. It last traded 1.23% lower as shares of Chinese tech giants Tencent and Alibaba dropped 2.93% and 3.7%, respectively.

Mainland Chinese stocks also declined, with the Shanghai composite down 0.26% while the Shenzhen component dipped 0.761%.

South Korea’s Kospi traded 1.07% lower. Australian stocks declined as the S&P/ASX 200 dipped 1.74%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.18% lower.

Commodity Insights

Oil prices fell on Friday, heading for a drop of nearly 4% for the week, burdened by the prospect of rate hikes, weaker global growth and COVID-19 lockdowns in China hurting demand, even as the European Union weighed a ban on Russian oil.

Brent crude futures slid 81 cents, or 0.8%, to $107.52 a barrel at 0130 GMT, while U.S. West Texas Intermediate (WTI) crude futures declined 72 cents, or 0.7%, to $103.07 a barrel.

Both benchmark contracts were headed for weekly declines of around 3.7%.

Economic Events

 

Economic Calendar

Friday, Apr 22, 2022

Time

Country

Event

Forecast

Previous

11:30

GBP

Retail Sales (MoM) (Mar)

-0.30%

-0.30%

13:00

EUR

German Manufacturing PMI (Apr)

54.5

56.9

14:00

GBP

Composite PMI (Apr)

59.7

60.9

14:00

GBP

Services PMI

62.6

14:00

GBP

Manufacturing PMI

55.2

18:30

EUR

ECB President Lagarde Speaks

20:00

GBP

BoE Gov Bailey 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/