World Markets – 20 September 2022

 

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World Markets

September 20, 2022

World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 20, 2022.

World MarketsFX Insights

Indian Rupee

The Indian rupee is seen flat ahead of series of central bank meetings where most central banks except Japan is likely to raise the interest rates to fight inflation.

Most important is US Interest rate decision, where a 75 basis point rise is expected. The market is waiting for the forward guidance on future action by the Federal reserve.

Technical Analysis

The current level is 79.70. 

In the daily chart,  first support is placed at 79.40  ( 50 day moving average and lower Bollinger band). The break of 79.40 will take the pair towards 79.15 ( Last weeks low).

The First Resistance is at 79.85, which is  previous high. If it breaks 79.85, then we can see 80.02, which is upper bollinger band.

In technical indicators, RSI is at 50.78 and is flat.

MACD is now narrow and is flat.

USD-INR-Daily-20-Sep-2022.Other currency

On Tuesday, the dollar remained firm against major peers, just below a two-decade high, as investors braced for the Federal Reserve to maintain its aggressive interest-rate-hiking campaign to cool overheated inflation.

The dollar index, which compares the greenback to six currencies, was little changed at 109.53, remaining stable for the time being after falling from as high as 110.79 earlier this month, a level not seen since June 2002.

The dollar fell 0.15% to 142.96 yen, extending a week-long consolidation after two attempts at 145 this month, which took it as high as 144.99 on September 7 for the first time in 24 years.

The euro was little changed at $1.0030, after steadily rising over the previous week and consolidating its position above parity. On September 6, it fell to $0.9864 for the first time in two decades.

Sterling was unchanged at $1.14295, after falling to a 37-year low of $1.13510 at the end of last week.

Equity Insights

Indian Equity 

The market is expected to open on a positive note, with the SGX Nifty indicating a firm start for India’s broader index with a gain of 131.50 points.

At the close on Monday, the BSE Sensex rose 300 points to 59,141, while the Nifty50 rose 92 points to 17,622 and formed a decent bullish candlestick pattern on the daily charts.

According to the pivot charts, the key support level for the Nifty is 17,479, followed by 17,335. If the index continues to rise, the key resistance levels to watch are 17,716 and 17,810.

According to preliminary data available on the NSE, foreign institutional investors (FIIs) net bought shares worth Rs 312.31 crore on September 19, while domestic institutional investors (DIIs) net sold shares worth Rs 94.68 crore.

Other Equity

Asia-Pacific stocks rose on Tuesday as Japan’s inflation accelerated and China maintained its loan prime rate.

The Hang Seng index in Hong Kong rose 0.91%, with the Hang Seng tech index rising nearly 2%. The Shanghai Composite in mainland China gained 0.51%, while the Shenzhen Component gained 0.58%.

In Australia, the S&P/ASX 200 gained about 1%. The Nikkei 225 in Japan gained 0.34% on its return to trading after a holiday, while the Topix gained 0.37%.

The South Korean Kospi gained 0.37%, while the Kosdaq gained 1.04%. MSCI’s broadest Asia-Pacific share index rose 0.71%.

Commodity Insights

Oil

Oil prices were little changed on Tuesday after rising the previous session on fears that interest rate hikes in the United States to combat inflation will slow economic growth and fuel demand in the world’s largest crude consumer.

Brent crude futures for November delivery dropped 7 cents, or 0.1%, to $91.93 per barrel.

The price of West Texas Intermediate crude for October delivery in the United States was $85.59 per barrel, down 14 cents, or 0.2%. The October contract expires on Tuesday, and the more active November contract was at $85.20, down 16 cents, or 0.2%, at the time of writing.

Gold

Gold prices rose slightly on Tuesday but remained within a narrow range seen this week as investors resisted making large bets ahead of a US Federal Reserve meeting expected to result in an interest rate hike.

Spot gold increased by 0.2% to $1,679.14 per ounce, while gold futures increased by 0.6% to $1,687.85 per ounce. Following steep losses last week, both instruments have shown muted moves since Monday

Bond Market Insights

For the first time since November 2007, the two-year US Treasury yield, which is extremely sensitive to policy expectations, rose as high as 3.970% overnight. The 10-year yield hit a high of 3.518%, the highest since April 2011.

Economic Events

Economic Calendar

Tuesday, Sep 20, 2022

TimeCountry

Event

ForecastPrevious
     
11:30EURGerman PPI (MoM) (Aug)

1.60%

5.30%

18:00USDHousing Starts (MoM) (Aug) 

-9.60%

18:00USDBuilding Permits (Aug)

1.610M

1.685M


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/