The Dow gained 3.4% to close above the 23,000 mark for the first time in a month despite the US seeing the largest number of Coronavirus deaths in a day.
The most important event to look forward to today would be the meeting between OPEC and OPEC+ to discuss production cuts. India is looking to bolster it’s strategic petroleum reserves to take advantage of low crude prices.
Asian currencies are trading stronger against the USD. The rupee is likely to open around 76 and trade 75.75-76.25 range. SGX is indicating a 150pt gain for Nifty on open. Asian equities are positive, taking cues from the Dow overnight.
Today there is a Gsec auction of 19,000 cr. The cutoffs will be interesting to watch. The next SDL auction is on Monday. The spread of Gsec over repo, and that of SDLs over Gsecs has reached alarming levels on concerns about imminent fiscal slippage.
The arbitrage between near-month offshore and onshore continues. Elevated offshore points are percolating into onshore exchange-traded futures.
Eur 1.0867, GBP 1.2397, Aud 0.6235, Jpy 108.95, Cnh 7.0762, WTI 25.97, Gold 1648, US 10y 0.75%, US 2y 0.25%, India 10y 6.45%, Dow +779pts, Dow fut -30pts, DXY 100.09.”