Financial Market Overview
01st January, 2018
MARKETS AT OPEN:-
- The Indian rupee opened higher against the dollar after the U.S. currency ended 2018 on a defensive note. A positive close on Wall Street is further expected provide support to the local currency.
- The rupee opened at 69.62 versus its previous close of 69.94 the one-month USD/INR NDF had closed near 69.75 yesterday, indicating that rupee could build on its recent rally. With no negative cues at hand (for rupee) and nothing by way of global leads, the existing downward trend on the pair may not be challenged too much Further, it helps that rupee managed an annual close above 70.
- We expect USD/INR to trade in a range between 69.40 to 69.90 today.
- Equity benchmarks have had a good start in opening trade. The Nifty is above 10,800 level.
- The Sensex is up 93 points or 0.26% at 36161, and the Nifty up 20.15 points or 0.19% at 10882.65.
- Asian Equity Markets are closed today on account of New Year’s day.
- European markets finished mixed as of the most recent closing prices. The DAX gained 1.71% and the CAC 40 rose 1.11%. The FTSE 100 lost 0.09%.
- Wall Street advanced in relatively low-volume trading on Monday as revelers gathered to ring in 2019, marking the end of the worst year for U.S. stocks in a decade.
- The Dow Jones Industrial Average rose 265.67 points, or 1.15 percent, to 23,328.07, the S&P 500 gained 21.21 points, or 0.85 percent, to 2,506.95, and the Nasdaq Composite added 50.76 points, or 0.77 percent, to 6,635.28.
- British Prime Minister Theresa May urged lawmakers on Monday to back her Brexit deal, promising that it would allow the country to “turn a corner” and let the government focus on solving domestic problems such as housing and a skill shortage. May made the appeal in a New Year’s message little more than two weeks before a make-or-break vote in parliament on her plan for Britain’s exit from the European Union which is due to happen on March 29.
- The dollar lost more ground against the major currencies yesterday, slipping for the third straight session. The dollar index declined 0.2% on Monday to close at its lowest level in almost two months. The index’s losses came primarily on account of the dollar’s struggles against the yen. The Japanese yen, a safe-haven currency, rose 0.6% yesterday to near 109.60 versus the dollar, its highest in more than six months.
- The yield difference between the 10-year U.S. bond and two-year is currently at 20 basis points, after having fallen to under 10 basis points last month. A flattening yield curve is considered a sign that investors are anticipating economic growth to cool off.
- Foreign investors net sold 3.27 billion rupees worth of Indian share on Dec. 28. In December, these investors bought about $400 billion worth of shares.