World Markets – 22 September 2022

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World Markets

September 22, 2022

 

World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 22, 2022.

World MarketsFX Insights

Indian Rupee

The Indian rupee is expected to hit a record low against the US dollar on Thursday, after the US Federal Reserve raised interest rates by 75 basis points on Wednesday and signalled further rate hikes.

 

In early trades, the rupee  is expected to open at around 80.25-80.30 per US dollar, down from 79.9750 the previous session. The previous low for the local unit was 80.12, set in late August.

Technical Analysis

The current level is 80.22. 

In the daily chart,  first support is placed at 80.11  ( upper Bollinger band). The break of 80.11 will take the pair towards 80.00 (Psycological).

No resistance in charts as this is all time high

In technical indicators, RSI is at 62.62 and is now showing upward pressure.

MACD is also showing up move now.

USD INR Daily ChartOther currency

The US dollar rose to a new two-decade high against major peers on Thursday, propelled by the Federal Reserve’s hawkish interest-rate outlook and Russian President Vladamir Putin’s mobilisation of additional troops for the Ukraine war.

For the first time since June 2002, the dollar index, which measures the currency against a basket of six counterparts including the euro and sterling, reached 111.65.

The Fed raised interest rates by 75 basis points on Wednesday, to 3%-3.25%, as expected by economists. The path policymakers see for interest rates from here, known as the dot plot, surprised markets.

By the end of this year, the median dot now shows a funds rate midpoint of 4.375%. This would imply 125 basis point increases over the next two meetings in 2022, in November and December.

The euro fell to a new 20-year low of $0.9807 before settling 0.23% lower on Wednesday at $0.9812.

The dollar rose 0.23% to 144.44 yen, edging closer to the psychological 145 level, where it has been rejected twice this month. On September 7, it reached a 24-year high of 144.99.

Sterling fell to a new 37-year low of $1.1225 before closing at $1.1233, down 0.3% from the previous session.

Equity Insights

Indian Equity 

Following weak global cues, the market is expected to open in the red, with the SGX Nifty indicating a gap-down opening for India’s broader index with a loss of 121 points.

In the midst of volatility, the BSE Sensex fell 263 points to 59,457, while the Nifty50 fell 98 points to 17,718 and formed a decent bearish candle on the daily charts.

According to the pivot charts, the key support level for the Nifty is 17,400, followed by 17,303. If the index continues to rise, the key resistance levels to watch are 17,700 and 17,815.

Other Equity

Asia’s markets fell on Thursday after the United States Federal Reserve raised interest rates and signalled more hikes to come. Following the announcement, US stocks were volatile and closed sharply lower.

In early trade in Hong Kong, the Hang Seng index fell 1.56%, while the Hang Seng Tech index fell 1.69%. The Shanghai Composite in mainland China fell 0.16%, while the Shenzhen Component rose after falling previously.

The Nikkei 225 index in Japan fell 0.88%, while the Topix index fell 0.58%. South Korea’s Kospi fell 1.47%, while the Kosdaq fell 2.1%. The MSCI Asia Pacific Index (excluding Japan) fell 1.3%.

The Dow Jones Industrial Average fell 522.45 points, or 1.7%, to 30,183.78, the S&P 500 dropped 66 points, or 1.7%, to 3,789.93, and the Nasdaq Composite fell 204.86 points, or 1.79 percent, to 11,220.19.

Commodity Insights

Oil

Oil prices fell in early Asian trade on Thursday after the United States Federal Reserve raised interest rates significantly to combat inflation, casting a shadow over future fuel demand.

Brent crude futures fell 16 cents, or 0.2%, to $89.67 per barrel , while WTI crude in the United States fell 15 cents to $82.79 per barrel.

Gold

Gold prices gave up recent gains, while copper extended losses on Thursday, as the Federal Reserve’s interest rate hike and hawkish message boosted the dollar and weighed heavily on metal markets.

Bullion prices initially exhibited some resilience following the Fed’s decision, rebounding from more than two-year lows as investors perceived the metal to be heavily oversold. However, it had since given up the majority of its gains and was trading in a flat-to-low range.

Spot gold was down 0.3% to $1,669.56 per ounce, while gold futures were down slightly to $1,674.45 per ounce.

Economic Events

Economic Calendar

Thursday, Sep 22, 2022

TimeCountry

Event

ForecastPrevious
12:00JPYBoJ Press Conference  
16:30GBPBoE MPC Meeting Minutes  
16:30GBPBoE Interest Rate Decision (Sep)

2.25%

1.75%

18:00USDInitial Jobless Claims

218K

213K

 

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/