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World Markets
September 29, 2022
World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 29, 2022.
FX Insights
Indian Rupee
The Indian rupee is expected to open higher against the US dollar, following the Bank of England’s decision to buy long-dated British bonds, which caused Treasury yields and the dollar index to fall.
In early trades, the rupee is expected to trade at around 81.60-81.65 per dollar, up from a record low of 81.94 on Wednesday. Despite likely intervention by the Reserve Bank of India, the rupee has fallen nearly 3% in the last six sessions.
The rupee came perilously close to breaking through the 82-per-dollar mark on Wednesday, as comments from various Federal Reserve officials suggested that the US central bank’s policy tightening cycle had a long way to go.
On Wednesday, the rupee fell 0.4 percent to a new low of 81.94 per US dollar. The domestic currency fell to an intra-day low of 81.95 per dollar after settling at 81.58 per dollar on Tuesday.
Without the Reserve Bank of India’s (RBI) heavy market interventions in the latter half of trade, the rupee would have fallen well below the 82/$1 level . The central bank is estimated to have sold more than $1 billion in the spot market on Wednesday to protect 82.00 levels
Technical Analysis
The current level is 81.59.
In the daily chart, first support is placed at 81.18 ( 7 day moving average). The break of 81.18 will take the pair towards 80.55 (18day moving average).
First resistance is 81.85 (Upper Bollinger Band). If it breaks 81.85 we may see 82.00 where Reserve bank is seen selling dollars.
In technical indicators, RSI is at 72.30 and is now overbought.
MACD is also very wide and Bollinger band is also very wide.
Other currency
Sterling fell sharply against the dollar on Thursday after the Bank of England announced unlimited bond purchases to shore up Britain’s financial markets, which had been battered by the government’s radical tax cuts.
The pound rose to its highest level since mid-June on Wednesday, dragging the euro down with it, after the Bank of England conducted the first of its emergency bond-buyback operations worth more than a billion pounds. It has committed to purchasing as many long-dated gilts as necessary until October 14.
Sterling fell 0.51% to $1.0831, reversing some of the previous session’s 1.41% gain. The euro fell 0.32% to $0.97065 after rising 1.51% on Wednesday, the most since early March.
The US dollar index, which compares the greenback to the pound, euro, and four other major currencies, rose 0.07% to 113.11, returning to Wednesday’s 20-year high of 114.78.
The dollar increased by 0.23% to 144.43 yen. Since Japanese officials intervened a week ago, the currency pair has kept its head below the 145 line, following a surge to a 24-year high of 145.90 that day.
Equity Insights
Indian Equity
The market is expected to open in the green, with the SGX Nifty indicating a 186-point gain for the broader index in India.
Yesterday, the BSE Sensex fell 509 points to 56,598 and the Nifty50 fell 149 points to 16,859, forming a Doji pattern on the daily charts, indicating indecision among bulls and bears about the future market trend.
According to the pivot charts, the Nifty’s key support level is 16991 followed by 16,773,. If the index continues to rise, the key resistance levels to watch are 17,123 and 17,205.
According to preliminary data available on the NSE, foreign institutional investors (FIIs) net sold shares worth Rs 2,772.49 crore on September 28, while domestic institutional investors (DIIs) net bought shares worth Rs 2,544.17 crore.
Other Equity
Asia-Pacific stocks rose on Thursday, following a rebound on Wall Street overnight. The rally in the United States occurred after the Bank of England announced that it would intervene in the bond market to stabilise conditions.
The Hang Seng index in Hong Kong rose 1.33% in early trade. In South Korea, the Kospi gained 1.31%, while the Kosdaq gained 2.38%.
The Nikkei 225 index in Japan gained about 1%, while the Topix index gained 0.37%. The S&P/ASX 200 index in Australia rose 1.53%.
In mainland China, the Shanghai Composite increased by 0.88%, while the Shenzhen Component increased by around 1%. The MSCI Asia Pacific Index (excluding Japan) rose 1.06%.
In the United States, the Dow Jones Industrial Average rose 548.75 points, or 1.88%, overnight to 29,683.74. The S&P 500 rose 1.97% to 3,719.04, staging a comeback after setting a new bear market low the day before. At the close, the Nasdaq Composite was up 2.05% at 11,051.64.
Commodity Insights
Oil
Oil prices fell in early Asian trading on Thursday as a strong dollar and economic woes outweighed consumer demand optimism.
Brent crude futures were down 59 cents, or 0.7%, at $88.73 per barrel, while US crude futures were down 54 cents, or 0.7%, at $81.59. After hitting nine-month lows this week, both benchmarks recovered in the previous two sessions amid volatile trading.
Gold
Gold prices fell slightly on Thursday after recovering sharply from multi-year lows, as markets remained wary of a dollar and Treasury yield resurgence.
Gold futures fell 0.3% to $1,664.35 an ounce, while spot gold prices fell 0.3% to $1,655.86 an ounce. On Wednesday, both instruments gained nearly 2%, marking their best day in two months.
Economic Events
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Economic Calendar |
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Thursday, Sep 29, 2022 |
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Time |
Country | Event |
Forecast |
Previous |
| 17:00 | INR | RBI MPC Meeting Minutes | ||
| 18:00 | USD | Initial Jobless Claims |
215K |
213K |
| 18:00 | USD | GDP (QoQ) (Q2) |
-0.60% |
-0.60% |
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
