The European Union has decided to close all internal borders to permit only essential travel. Philippines, Malaysia have enacted movement controls.
The Dow crashed close to 3000pts (-13%) overnight in the worst rout since the 1987 crash. It was the third time in a week that a circuit breaker was triggered. However, Dow futures are up 3.5%. SGX is pointing to a 100pt gain for Nifty on open.
Rupee seems to be outperforming as RBI refrained from cutting rates yesterday. The Korean Won has depreciated after the Bank of Korea cut rates by 50bps yesterday. Likely open for Rupee 74.10. Likely range 73.90-74.30 with a downside bias.
We may see the forward points remain elevated as higher US yields and disappointment of RBI not delivering a cut would likely push our bond yields higher too.
The focus will be on the US Fed policy tomorrow. Now that it has already unleashed Rate cuts and QE, the tone of the policy is what would matter.
Eur 1.1177, Gbp 1.2249, Aud 0.6119, Jpy 106.37, Cnh 7.0000, WTI 29.70, Gold 1492, US 10y 0.80%, US 2y 0.42%, India 10y 6.23%, Dow -2997pts, Dow Fut +600pts, DXY 98.01. “
