Nov 05 2018

Indian rupee fell as U.S. employment data raised bets of quicker interest rate hikes

Financial Market Overview

05th November, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee fell for the first time in three sessions against the dollar, in line with regional peers, as robust U.S. employment data raised bets of quicker interest rate hikes in the world’s largest economy. The rupee ended at 73.12 to a dollar against 72.44 at previous close. The unit fell 0.95% today, its biggest single-session fall since Sep. 10.
  • However, continued decline in global crude oil prices capped losses in the local currency. Strong jobs data that has heightened rate hike bets in the U.S. led to fall in most emerging market currencies and impacted the rupee today, soft crude oil prices avoided any severe depreciation.
  • This week, traders’ focus will be on the U.S. mid-term elections and there are possibilities of higher volatility due to movement in the dollar index.

 Indian Equities:-

  • Last hour buying helped the Indices to recover some ground with Nifty ended above 10,500 level.
  • Among the sectors, the Nifty PSU bank index remained the major contributor to the recovery as it ended higher by more than 3 percent. Nifty IT and Metal index also ended in green, while auto, infra, pharma and FMCG index ended in red.
  • At the close of market hours, the Sensex was down 64.02 points at 34,947.63, while the Nifty was down 29 points at 10,524. About 1324 shares have advanced, 1292 shares declined, and 155 shares are unchanged.

 Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.08% while London’s FTSE 100 is up 0.05% and Germany’s DAX is up 0.03%.
  • Business activity in Britain’s dominant services sector slowed to a seven-month low last month and firms’ expectations for the coming year are the gloomiest since just after the 2016 Brexit vote, a major survey showed on Monday.
  • The IHS Markit/CIPS purchasing managers’ index (PMI) dropped to 52.2 in October from 53.9 in September, its lowest since a patch of unusually icy weather in March and a bigger fall than economists had forecast in a Reuters poll.
  • China’s services sector chalked its slowest growth in over a year last month as the volume of new orders dried up, a private survey showed, suggesting a further loss in economic momentum as a rough 2018 draws to a close. The Caixin/Markit services purchasing managers’ index (PMI) fell to 50.8 in October from 53.1 in September, the lowest since September 2017, and creeping closer to the 50 line that separates growth from contraction.
  • Germany is convinced that it should enable legal business relations with Iran and is checking how to protect companies affected by sanctions reimposed on Iran by Washington, a government spokesman said on Monday.
  • We are assessing how we will be able to protect the basis of our business engagements there,” government spokesman Steffen Seibert said.