World Markets
18 March 2021
World Markets at a glance for Currency, Equity, Bonds, Commodities, Crypto Currency, Financial News and major Economic Events
Headlines
Dollar wobbles after Fed pushes back against rate hike speculation
Stocks rise after Fed tames inflation fears, projects U.S. GDP surge
Currency
The U.S. dollar was on the defensive on Thursday after the Federal Reserve signalled it was in no hurry to raise interest rates through all of 2023 even as it saw a V-shaped recovery in the world’s largest economy.
Investors dumped the dollar and rushed to more risk-sensitive currencies as Fed Chairman Jerome Powell, true to his dovish credentials, dampened speculation a stronger economic outlook could propel the central bank to wind back its stimulus.
The dollar index dropped 0.5% to its lowest levels in two weeks and last stood at 91.400. The dollar slipped to 108.87 yen, off Monday’s nine-month top of 109.365 while the euro rose to $1.1980, edging near last week’s high of $1.1990.The British pound traded at $1.3970, having gained about 0.5% overnight. The Bank of England is expected to keep its benchmark Bank Rate at a historic low of 0.1% and its bond-buying program unchanged at 895 billion pounds later in the day.
The 10-year U.S. Treasuries yield gyrated wildly before settling around 1.648% for now, having hit an 13-month high just before the Fed’s announcement.
Equity
Asian shares and U.S. stock futures rose on Thursday after the Federal Reserve committed to maintaining accommodative monetary policy and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.99%, while stocks in China rose 0.46%. Australia’s market bucked the trend and fell 0.3%. E-mini futures for the S&P 500 advanced 0.3%.
The S&P 500 closed at a record high on Wednesday and the Dow Jones Industrial Average closed above 33,000 points for the first time, bolstered by the Fed’s strong economic forecast and Powell’s comments that it is too early to discuss tapering-off measures.
While inflation is expected to reach 2.4% this year, above the central bank’s 2% target, Fed Chair Jerome Powell called it a temporary surge that will not change the Fed’s pledge to keep its benchmark overnight interest rate near zero.
Oil
Oil prices dropped for a fifth day on Thursday after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook.
Brent crude was down 12 cents, or 0.2%, at $67.88 a barrel by 0119 GMT after dropping by 0.6% on Wednesday. U.S. oil was also down 12 cents, or 0.2%, at $64.48 a barrel, having fallen 0.3% the previous session.
Government data on Wednesday showed U.S. crude inventories have risen for four straight weeks after refineries in the south were forced to shut due to severe cold weather. An industry report estimating a 1 million barrel-drop had raised hopes the run of gains might have stopped.
Financial Newspapers
Business Standard
Ø NPAs expected to increase in first half of 2021: FICCI-IBA survey
Ø Parliamentary panel for early disposal of pending 205 FDI proposals
Ø Economic reforms to drive India sovereign rating, says K V Kamath
Ø Lok Sabha passes Appropriation Bill, completing two-thirds of budget exercise
Ø Vodafone Idea, Airtel may resort to indirect tariff hikes
Ø Migsun group to invest Rs 4,500 crore in three stuck projects
Business Line
Ø India and Philippines most vulnerable to risks of a ‘taper tantrum’: S&P
Ø CA Rover Holdings sells 4.25% stake in SBI Cards for Rs 3,943 cr
Ø Oil prices slip for fourth day on Europe demand concern: IEA report
Ø China’s Baidu raises $3.1 billion from Hong Kong secondary listing
Ø IOC, Israeli firm form JV to to manufacture metal-air batteries for EVs
Ø Vodafone Idea posts first subscriber addition in 15 months: Trai data
Mint
Ø Advance tax collections for corporate tax, income tax turn positive
Ø Rising demand from China to drive rubber prices further
Ø NCLAT orders KS Oils liquidation; raps NCLT for lapse of 981 days
Ø Hitachi ABB Power Grids bags ₹124-cr order from BALCO
Ø Adani Transmission wins second package of MP project
Ø KSSF invests ₹410 crore in DCW Ltd
Financial Express
Ø India’s Hero Cycles to set up new global hub in London
Ø NSE invests in technology startup Capital Quant Solutions
Ø Retail investors latch on to Nazara’s IPO; Kalyan Jewellers fully subscribed
Ø US yields hit 13-month high, stocks drop with Fed meet at hand
Ø Punjab National Bank incorporates new entity for credit card business
Ø BHEL emerges lowest bidder for NPCIL’s ₹10,800 crore-tender
Deccan Chronicle
Ø Concessional 5% withholding tax continues for debt interest income of FPIs
Ø Square Yards acquires AI-based 3D visualisation platform PropVR
Ø Apple starts assembly of iPhone 12 in India
Major Economic Events
Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.
Sources
