World Markets – 21 September 2022

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World Markets

September 21, 2022

 

World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 21, 2022.

World Markets

FX 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 79.80. 

In the daily chart,  first support is placed at 79.70  ( 7 & 18 day moving average and middle Bollinger band). The break of 79.70 will take the pair towards 79.43 (50 day moving average).

The First Resistance is at 80.00, which is  psychological level & upper Bollinger Band. If it breaks 80.00, then we can see 80.15, which is all time high.

In technical indicators, RSI is at 54.62 and is flat.

MACD is now narrow and is flat.

USD INR Daily Chart

Other currency

On Wednesday, the dollar hovered near a two-decade high against a basket of currencies, as yields on U.S. Treasuries surged ahead of an interest rate decision that is expected to set the tone in financial markets for months.

The US dollar index, which measures the greenback against a basket of currencies, was steady at 110.17 after a 0.57% overnight gain, and was still close to a 20-year high of 110.79 set earlier this month.

The pound was last trading at $1.1381, close to a 37-year low of $1.1351, while the euro was 0.02% lower at $0.9967, extending its 0.56% drop overnight.

The yen, which has lost about 20% of its value against the US dollar this year, was up 0.1% at 143.56 per dollar, but remained close to its 24-year low of 144.99.

Equity Insights

Indian Equity 

The market is expected to open in the red, with the SGX Nifty indicating an 80-point loss for the broader index in India.

The BSE Sensex rose 578 points to 59,720, while the Nifty50 rose 194 points to 17,816 and formed a decent bullish candle that resembled the formation of a Shooting Star pattern on the daily charts.

According to the pivot charts, the Nifty’s key support level is 17,734, followed by 17,652. If the index continues to rise, the key resistance levels to watch are 17,909 and 18,001.

According to preliminary data available on the NSE, foreign institutional investors (FIIs) net bought shares worth Rs 1,196.19 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 131.94 crore on September 20.

Other Equity

Asia-Pacific stocks opened lower on Wednesday, following Wall Street’s negative lead ahead of the Federal Reserve’s expected rate hike.

In Japan, the Nikkei 225 fell 1.31%, while the Topix index fell 1.23%. In Australia, the S&P/ASX 200 fell 1.4%.

The Hang Seng index in Hong Kong fell 1.25%, while the Hang Seng Tech index fell 2.1%. In mainland China, the Shanghai Composite fell 0.56%, while the Shenzhen Component fell 0.9%.

The Kospi in South Korea fell 0.9%. MCSI’s broadest index of Asia-Pacific stocks outside of Japan fell by about 1%.

The Dow Jones Industrial Average fell 313.45 points, or 1.01%. The S&P 500 fell 1.13% to 3,855.93, while the Nasdaq Composite fell 0.95% to 11,425.05.

Commodity Insights

Oil

Oil prices fell further on Wednesday as traders worried about additional pressure on crude demand from the Federal Reserve’s widely anticipated interest rate hike, while signs of a potential build in US gasoline inventories also weighed.

Brent oil futures in London fell 0.6% to $90.37 per barrel, while West Texas Intermediate crude futures in the United States fell 0.2% to $83.73. On Tuesday, both contracts fell more than 1%.

Gold

On Wednesday, gold and copper remained in a narrow range as expectations of a large interest rate hike by the Federal Reserve boosted the dollar and weighed on metal markets.

After hotter-than-expected U.S. inflation data last week, the Fed is expected to raise interest rates by at least 75 basis points bps when it concludes a two-day meeting later on Wednesday, with traders also pricing in the possibility of a 100 bps hike.

Spot gold increased by 0.1% to $1,666.04 per ounce, while gold futures increased by 0.2% to $1,674.0 per ounce. Both instruments fell 0.6% and 0.3% on Tuesday, respectively, and are down about 2% over the last four sessions.

Bond Market Insights

On Tuesday, the yield on two-year US Treasury notes, a rough gauge of interest rate expectations, rose to nearly a 15-year high, a day before the Federal Reserve is expected to raise rates by 75 basis points to combat inflation.

The two-year is highly sensitive to changes in monetary policy expectations, and it hit 3.992 percent early on Tuesday. The last time its yield surpassed 4% was on October 18, 2007.

Economic Events

Economic Calendar

Wednesday, Sep 21, 2022

TimeCountry

Event

ForecastPrevious
12:30EUREuropean Central Bank Non-monetary Policy Meeting  
19:30USDExisting Home Sales (Aug)

4.70M

4.81M

20:00USDCrude Oil Inventories

2.161M

2.442M

23:30USDFed Interest Rate Decision

3.25%

2.50%

23:30USDFOMC Economic Projections  

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/