World Markets – 23 September 2022

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World Markets

September 23, 2022

World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 23, 2022.

World MarketsFX Insights

Indian Rupee

The Indian rupee is expected to fall further to a new record low on Friday, as Treasury yields rise to multi-year highs and importers demand dollars.

The rupee is expected to open at around 81 rupees to the US dollar, down from 80.86 the previous session

The local unit suffered its biggest single session percentage decline since February on Thursday due to a lack of aggressive intervention by the Reserve Bank of India (RBI) and a very hawkish Federal Reserve rate outlook in the United States.

Technical Analysis

The current level is 81.06. 

In the daily chart,  first support is placed at 80.69  ( upper Bollinger band). The break of 80.69 will take the pair towards 80.31 (7 day moving average).

No resistance in charts as this is all time high

In technical indicators, RSI is at 71.88 and is now overbought.

MACD is also showing up move now.

USD INR Daily ChartOther currency

On Friday, the yen was on track for its first weekly gain in more than a month after Japanese authorities intervened in foreign exchange markets for the first time since 1998, while the dollar remained at multi-year highs.

In early Asian trade, the yen was up about 0.1% to 142.24 per dollar. On Thursday, the yen rose more than 1% to a session low of 140.31, following news that Japan had purchased yen to defend its battered currency.

Meanwhile, sterling rose 0.05% to $1.12645, but remained close to its fresh 37-year low of $1.1213 set the previous session, and was little helped by the Bank of England’s overnight 50 basis point rate hike.

The US dollar index rose to 111.27, close to a two-decade high of 111.81 set the previous session, and is on track for a 1.5% weekly gain.

The euro was up 0.02% to $0.9836 after falling to a new 20-year low of $0.9807 overnight.

Equity Insights

Indian Equity 

The market is expected to open in the red, with the SGX Nifty indicating a 65-point loss for the broader index in India.

On September 22, the BSE Sensex fell 337 points to close at 59,120, recouping half of the day’s losses, while the Nifty50 fell 89 points to 17,630, forming a small-bodied bullish candle that resembled the Doji or High Wave pattern on the daily charts.

According to the pivot charts, the key support level for the Nifty is 17,534, followed by 17,438. If the index continues to rise, the key resistance levels to watch are 17,724 and 17,819.

According to preliminary data available on the NSE, foreign institutional investors (FIIs) net sold shares worth Rs 2,509.55 crore on September 22, while domestic institutional investors (DIIs) net bought shares worth Rs 263.07 crore.

Other Equity

Asia-Pacific stocks fell on Friday as investors weighed the Federal Reserve’s hawkish stance.

In Australia, the S&P/ASX 200 fell 1.56% after resuming trading on Thursday after a holiday. South Korea’s Kospi fell 1.59%, while the Kosdaq fell 2.19%.

The Hang Seng index in Hong Kong fell 0.54% in early trading.

Mainland Chinese stocks fell as well, with the Shanghai Composite down 0.47% and the Shenzhen Component down around 1%.

MSCI’s broadest index of Asia-Pacific shares outside of Japan fell about 1%.

Following the Fed’s latest 75-basis-point rate hike, stocks dropped for the third consecutive day on Wall Street.

The S&P 500 fell 0.8% to 3,757.99, while the Nasdaq Composite fell 1.4% to 11,066.81. The Dow Jones Industrial Average fell 107.10 points, or 0.3%, to close at 30,076.68.

Commodity Insights

Oil

Oil prices rose in early Asian trade on Friday as a stalled Iran nuclear deal and Moscow’s new mobilisation campaign in its invasion of Ukraine threatened to further restrict global supplies.

Brent crude futures rose 16 cents, or 0.2%, to $90.62 per barrel, while WTI crude futures in the United States rose 22 cents to $83.71 per barrel.

Gold

As selling pressure from a hawkish Federal Reserve appeared to have eased, Gold prices held steady on Friday and were set to end the week largely unchanged.

Bullion prices showed surprising resilience this week after the Fed raised rates and struck a more hawkish tone than many expected, with US interest rates now expected to be well above 4% by the end of the year.

However, gold prices were still trading well below $1,700, a key support level that they had lost this week. This also sparked some gold bargain hunting.

Spot gold was largely unchanged at $1,672.37 per ounce, while gold futures were largely unchanged at $1,680 per ounce.

Economic Events

 

Economic Calendar

Friday, Sep 23, 2022

TimeCountryEventForecastPrevious
13:00EURGerman Manufacturing PMI (Sep)

48.3

49.1

14:00GBPComposite PMI

49

49.6

14:00GBPServices PMI

50

50.9

14:00GBPManufacturing PMI

47.5

47.3

19:15USDManufacturing PMI (Sep)

51.1

51.5

19:15USDServices PMI (Sep)

45

43.7

 

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/