Nov 13 2018

India Rupee Rises As Oil Slump

Financial Market Overview

13th November, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee rose for the third time in four sessions against the dollar, as lower crude oil prices and reports of talks between the U.S. and China eased concerns over trade feud between the world’s biggest two economies.
  • The rupee settled at 72.67 to a dollar, against 72.89 at close yesterday. It opened at 72.79 and then fell to an intraday low of 72.83 before rising to the day’s high of 72.51. Most Asian currencies pared early losses to end higher against the greenback. Lower crude oil prices and renewed talks over likely U.S.-China negotiations are helping sentiments, but any large gains in the rupee were not seen as this has been going on in the market for quite some time now.

 Indian Equities:-

  • Tuesday’s trade witnessed the bulls making a strong comeback, helping the Sensex end over 300 points higher, while the Nifty closed above 10,550-mark.At the close of market hours, the Sensex ended up 331.50 points or 0.95% at 35144.49, while the Nifty closed up 100.30 points or 0.96% at 10582.50.
  • The market breadth was narrow as 1,305 shares advanced, against a decline of 1,283 shares, while 150 shares were unchanged. Despite volatility in global markets, Nifty gained nearly 1% supported by sharp fall in oil prices. Softening of CPI inflation to 3.31%, India’s stable industrial production and gains in rupee added to the positives.

 Global Markets:-

  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.63% while London’s FTSE 100 is up 0.16% and France’s CAC 40 is up 0.13%.European shares recovered on Tuesday after feeling the strain of a tech rout on Wall Street, while political risks in Europe helped the dollar as investors dumped riskier assets. Fears of a peak in corporate earnings growth, softening global demand and rising interest rates in the United States have put investors on edge in the past month.
  • U.S. trade war and the twin risks from Brexit and Italy’s budget row with the European Union. Volatility is on the rise again.Monday’s equity sell-off in the U.S. was led by tech stocks, and Apple and Amazon were the major culprits, with the latter’s stock slumping over 5 percent.
  • U.S. President Donald Trump will turn up the heat over trade. His administration is broadening its trade battle with a plan to use export controls, indictments and other tools to counter alleged Chinese the theft of intellectual property.
  • Investors do not expect the German economy to recover rapidly from a weak patch, the ZEW research institute said on Tuesday, adding that its monthly survey pointed to a subdued third quarter. Fears about trade disputes, the risk of a disorderly Brexit and political uncertainty at home are weighing on Europe’s largest economy, which is in its ninth year of growth.
  • The survey showed economic sentiment among investors in Europe’s biggest economy rising slightly to -24.1 in November from -24.7 in October.