Financial Market Overview
24rd January, 2019
- The Indian rupee gained for a second consecutive session, rising to a one-week high against the dollar as crude oil prices headed for a third session of decline and foreign banks sold the greenback in late trade, likely for corporate clients.
- The rupee ended at 71.07 to a dollar in Mumbai, its highest since Jan. 17, against 71.34 at previous close. The currency extended gains to day’s high of 71.06 in late trade as participants cut their long dollar position on talks of dollar inflows. Most Asian currencies ended mixed.
- Market at Close Equity benchmarks have ended the day on a positive note, but the Nifty has ended the session below 10,850.
- At the close of market hours, the Sensex was up 86.63 points or 0.24% at 36195.10, and the Nifty up 18.30 points or 0.17% at 10849.80. The market breadth was negative as 938 shares advanced, against a decline of 1,533 shares, while 152 shares were unchanged.
- European markets are mixed today. The CAC 40 is up 0.81% while the DAX gains 0.63%. The FTSE 100 is off 0.15%.
- Business activity across the euro zone barely expanded at the start of the year as a fall in new work meant growth was at a low not seen since the middle of 2013, a survey showed on Thursday. The findings will make disappointing reading for policymakers at the European Central Bank who have only just drawn a line under their more than 2.6 trillion euro asset purchase program that was supposed to support growth.
- German manufacturing activity contracted at the fastest pace in over four years in January, underlining worries that the euro zone’s largest economy may be losing steam. Markit said that its Flash German manufacturing PMI slumped to 49.9, the lowest in 50 months, from a final reading of 51.5 in December. The index to slip to 51.4. The services PMI improved to 53.10 this month, up from 51.8. That was above expectations for a reading of 52.2.
- Brent crude oil contract was trading 0.5% lower at $60.83 per barrel amid concerns over global growth and unexpected increase in U.S. inventories. The contract slipped 0.6% yesterday after falling 2% on Jan. 22.
- The dollar index traded 0.3% higher, tracking losses in euro as before the European Central Bank’s meeting. However, further gains were capped as the partial U.S. government shutdown continued, for over a month now.The single currency slipped 0.3% as the ECB is expected to reaffirm its plan to raise interest rates by the end of the year.