Financial Market Overview
4th September, 2018
MARKETS AT OPEN:-
- The Indian rupee opened fresh record lows against the U.S. dollar amid continuing pressure on emerging market currencies and persistent offshore demand for the dollar.
- The rupee is opened at 71.28 compared with its previous close of 71.21 The rupee’s failure to manage any form of rebound yesterday despite India’s better-than-expected GDP growth rate was reflective of the extent of its troubles.
- We expect the pair to trade in the range between 71.10 to 71.50
- The market gave up most of its gains in the first few minutes of beginning trade, with the Nifty trading below 11,600.
- The Sensex is up 9.89 points or 0.03% at 38322.41, and the Nifty down 6.80 points or 0.06% at 11575.60. The market breadth is narrow as 557 shares advanced, 457 shares declined, and 41 shares are unchanged.
- Banks are trading in the red, whereas IT is the big gainer of the day on the back of a weak rupee.
- Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.05% while the Hang Seng is down 0.10%. The Shanghai Composite is off 0.15%. The Australian’s ASX200 is down today by -26 points and -0.42%.
- European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.97% and the CAC 40 rose 0.13%. The DAX lost 0.14%.
- UK manufacturing sector ’ index fell to 52.8 in August, compared to forecasts for a reading of 53.9. That was its lowest reading in the last 25 months
- The prior month’s reading was 53.8. The report indicated that the slowdown was due to the first contraction in new export orders since April 2016.
- The Argentinian peso and the Turkish lira were once again the center of attention, owing to U.S. markets being closed on Monday. The lira declined about 2% against the dollar yesterday despite the nation’s central bank reportedly saying that it will adjust the monetary stance at a meeting next week to support price stability. The peso extended a recent selloff despite the country unveiling a new export tax and spending cuts to fight the currency crisis.
- Euro zone manufacturing growth slowed to a near two-year low in August as optimism dwindled amid growing fears of an escalating global trade war, a survey showed on Monday. It only represents about 70 percent of the usual sample size as swathes of European factories take a break over the summer months.
- IHS Markit’s August final manufacturing Purchasing Managers’ Index dropped to a 21-month low of 54.6 from July’s 55.1, unchanged from an initial reading, yet still comfortably above the 50 level that separates growth from contraction. An output index, which feeds into a composite PMI due on Wednesday and is regarded as a good gauge of economic health, nudged up to 54.7 from 54.4.