Market Morning Briefing

EQUITIES

The US markets were closed yesterday on account of the Labour day holiday.

The Asian markets are trading lower today. The Nikkei (9279.80) is down 0.23% and Shanghai (2689.16) is down 0.26%. The Sensex and Nifty closed higher yesterday at 18560.05 (up 338.62) and 5576.95 (up 97.55 points) and have very crucial Resistance near their current levels at 18530 and 5610 respectively. Might see some profit taking today.

COMMODITIES

Crude (74.00) is continuing to trade lower. The weaker demand outlook is retaining the downside pressure. With lack of upside momentum, a further dip to 72.50-00 is looking likely.

Gold (1248.30) is continuing to trade near 1250. The overall outlook is bullish and a strong break above 1250 would trigger fresh upmove towards 1275 in the coming days. Support is seen at 1220-10 region.

CURRENCIES

The Euro (1.2804) has come off from yesterday's high of 1.2919 on concerns about the European bank's to raise fresh furnds. Support is seen at 1.2780 and a break below it might see 1.2700-2650 over today/tomorrow. Dollar-Yen (84.21) is trading silent between 84.00 and 84.50 within its overall downtrend. The BOJ's interest rate decision is due today. Euro-Yen Cross (107.78) is keeping up the overall downtrend intact and might fall further towards 107.00-106.50.

Dollar-Swiss (1.0120) is retaining its downside pressure, but has very important long term Trendline Support at 1.0047 which might be tested in the coming days. The Pound (1.5376) has been ranged between 1.5325-5500 over the last few days with a bearish bias. Might fall towards 1.5200-5100 on a strong break below 1.5320. Aussie (0.9151) is trading flat in the range of 0.9130-80 since yesterday. Resistance is seen at 0.9183 and a break above it might see 0.9230-50 on the upside. RBA's interest rate decision is due today.

The Asian Currencies are trading weak as compared to yesterday. The Korean-Won is trading near 1177 and USD-SGD is trading near 1.3467. Dollar-Rupee closed lower at 46.54/55 yesterday. Might see a rise to 46.70 today.

INTEREST RATES

The 3M USD LIBOR was unchanged at 0.29%. The 2Y and 10Y yields were down 1bps each to quote at 0.50% and 2.69% respectively.

The RBA and BOJ meet on interest rate decision are due today and they are expected to leave their respective interest rates unchanged at 4.50% and 0.10%.