Jul 21 2018

Weekly Synopsis

21st July, 2018

Markets from 16th July to 20th July 2018:-

Rupee:-

  • Indian rupee logged its third weekly decline in four weeks against the dollar on a weekly basis it fell about 0.5%, on persistent weakness in the Chinese yuan. The rupee came off from the record low(69.13) hit yesterday to end higher after an apparent intervention by the central bank and on greenback sales by some exporters. The rupee closes on Friday at 68.84 against the previous weekly close of 68.52 on July 13th, 2018 to a greenback. It trades in a weekly range between 69.13 to 68.27 against the greenback.
  • India’s foreign exchange reserves fell for a fifth consecutive week to $405.08 billion as of the week ended Jul. 13, from $405.81 billion in the previous week, the central bank said yesterday. The decrease was due to a decline in foreign currency assets that fell to $380.00 billion from $380.79 billion in the previous week, the data showed.
  • India’s wholesale inflation grew 5.77 percent in June, a four-and-half year high, driven by some food items and fuel prices, latest price data released by the commerce and industry ministry showed on Monday. WPI witnessed a growth of 4.43 percent in May and 0.90 percent in June 2017.

Indian Equities:-

  • Indian shares ended higher on Friday, but finished marginally lower for the week, helped by gains in IT stocks such as Infosys Ltd on a weaker rupee, while investors awaited the outcome of a no-confidence motion against the government.
  • The broader NSE index closed 0.48 percent higher at 11,010.20, while the benchmark BSE index ended 0.4 percent higher at 36,496.37. For the week, the NSE index ended 0.08 percent lower, while the BSE index slipped 0.12 percent.
  • Infosys ended 2.4 percent higher. Shares in energy and financial sectors also advanced, with Reliance Industries Ltd ending up 2.2 percent, while Bajaj Finance Ltd finished 8 percent higher.

Global Markets:-

  • The U.S. dollar weakened on Friday after President Donald Trump complained again about the greenback’s strength and about Federal Reserve interest rate rises, the U.S. dollar fell the most in three weeks against a basket of six major currencies, halting a rally that had driven the greenback to a year high. The dollar index fell 0.77 percent and was last seen at 94.44.
  • Trump repeated his criticism a day earlier of the U.S. Federal Reserve’s policy on raising interest rates saying he is concerned the central bank will raise interest rates twice more this year, a White House official said. The U.S. president also lamented the strength of the dollar and accused the European Union and China of manipulating their currencies.
  • The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, hitting the lowest level since December 1969, official data showed on Thursday. The number of individuals filing for initial jobless benefits in the week ended July 14 declined by 8,000 to a seasonally adjusted 207,000 from the previous week’s revised total of 215,000, the U.S. Department of Labour said.
  • US. homebuilding fell in June, according to data released on Wednesday. Housing starts decreased 12.3% to a seasonally adjusted annual rate of 1.173 million units last month, the Commerce Department said. Economists had forecast housing starts declining to a pace of 1.320 million units last month.
  • The onshore yuan that tumbled to 6.8106 yesterday against the dollar, its lowest level since July 2017, was last seen at 6.7659. The yuan has weakened almost 6% since the start of June, as rising trade tensions pummel Chinese assets, dragging other emerging market currencies and equities.
  • UK retail sales fell 0.5% in June, the Office for National Statistics said on Thursday. This was compared to a 1.4% increase in the previous month which was revised up from an initial 1.3% advance. Economists had forecast a gain of 0.1%.
  • Inflation in the UK rose at a slower than expected rate in June, adding to the Bank of England’s dilemma as it considers whether to raise interest rates next month. The Office for National Statistics reported that the annual rate of inflation rose by 2.4%in June, matching May’s figure which was a one-year low and falling short of expectations for an increase of 2.6%.
  • On Wall Street, the Dow Jones Industrial Average fell 6.38 points, or 0.03 percent, to 25,058.12, the S&P 500 lost 2.67 points, or 0.10 percent, to 2,801.82 and the Nasdaq Composite dropped 5.10 points, or 0.07 percent, to 7,820.20.
  • European markets finished lower on Friday with shares in Germany leading the region. The DAX closed down 0.98% while France’s CAC 40 was off 0.35% and London’s FTSE 100 ended lower by 0.07%.