Aug 22 2018

Dollar Remains Defensive FED Minutes & U.S-China Trade Talks on Tap

Financial Market Overview

22nd August, 2018

Rupee:-

  • The Indian rupee was closed little change against the dollar, as importers’ greenback demand offset early gains from broad weakness in the U.S. currency after President Donald Trump criticised the Federal Reserve’s policy on interest rate increases. Rupee was closed at 69.81 to a dollar, against 69.82 at close yesterday. It opened higher at 69.66 and extended gains to 69.53, highest since Aug. 13.
  • The rupee has lost over 9% against dollar so far this year and is Asia’s worst performing currency.

Indian Equities:-

  • Along with it, all wholesale commodity markets, including those of metals and bullion, and currency markets will be closed on account of this festival.
  • India’s BSE Sensex ended 0.02% higher, closing at fresh record high, following gains in other Asian stock markets, ahead of lower-level trade talks between Chinese and U.S. officials in Washington this week.
  • The Sensex is up 77.31 points or 0.20% at 38356.06, while the Nifty is up 26.70 points or 0.23% at 11578.50.  The market breadth is positive as 405 shares advanced, against a decline of 140 shares , while 51 shares are unchanged.

Global Markets:-

  • Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.64% while the Hang Seng is down 0.09%. The Nikkei 225 is not trading.The Nikkei 225 is up 0.46%The Australian’s ASX200 is little nagative today by -19 points and -0.33% up.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.54% and the DAX rose 0.43%. The FTSE 100 lost 0.34%.
  • The benchmark S&P 500 closed at record high on Tuesday and equaled its longest-ever bull-market run, as U.S. stocks rose on encouraging earnings reports in the consumer sector and relative calm in the ongoing trade war between the United States and China.
  • The Dow Jones Industrial Average rose 62.65 points, or 0.24 percent, to 25,821.34, the S&P 500 gained 5.78 points, or 0.20 percent, to 2,862.83 and the Nasdaq Composite added 38.17 points, or 0.49 percent, to 7,859.17.
  • Release of minutes from the U.S. Federal Reserve’s August meeting, and a speech by Fed Chairman Jerome Powell on Friday for clues on future rate hikes The dollar index, which tracks the greenback against a basket of six major rivals, was 0.04 percent lower 95.220.The currency has lagged following Trump’s comments on Monday, in which he also accused China and Europe of manipulating their currencies.