Financial Market Overview
27th December, 2018
- The Indian rupee closed at an over one-week low against the dollar, dragged down by importers’ greenback demand for month-end payments and after an overnight spike in crude oil prices.
- The rupee settled at 70.35 to a dollar, its lowest since Dec. 19, and against 70.07 at previous close. It traded in a 70.18-70.40 band today. However, most Asian currencies reversed early losses to end higher against the dollar.
- Month-end dollar demand from oil and other importers and a $5 surge in crude oil prices in a single session at a time when global sentiments remain fragile dragged the rupee lower in a subdued trade, increasing the volatility in recent sessions.
- Equity benchmarks ended the session on a positive note, but off the high points. The Nifty ended December series below 10,800.
- Some selling in banks, automobiles, metals and pharmaceuticals weighed on benchmarks, while the Nifty Midcap index ended with gains of over one third of a percent.
- At the close of market hours, the Sensex was up 157.34 points or 0.44% at 35807.28, while the Nifty was higher by 49.90 points or 0.47% at 10779.80. The market breadth was narrow as 1313 shares advanced, against a decline of 1233 shares, while 181 shares were unchanged
- European markets are mixed. The CAC 40 is higher by 0.09%, while the DAX is leading the FTSE 100 lower. They are down 1.54% and 0.80% respectively.World stocks bounced off a near two-year low on Thursday, lifted by a dramatic Wall Street surge, though a fall in Chinese industrial profits and renewed Italian banking worries offered a sobering reminder of the problems weighing on the world economy.
- The Dow Jones Industrial Average surged at least 1,000 points in a single session for the first time on Wednesday in a broad stock rebound that also saw the S&P 500 post its biggest one-day percentage gain in more than nine years after the benchmark index was on the brink of a bear market. The Dow Jones Industrial Average rose 1,086.45 points, or 4.99 percent, to 22,878.65, the S&P 500 gained 116.63 points, or 4.96 percent, to 2,467.73 and the Nasdaq Composite added 361.44 points, or 5.84 percent, to 6,554.36.
- The U.S. Department of Commerce’s Bureau of Economic Analysis and Census Bureau will not publish economic data during the ongoing partial government shutdown, the Wall Street Journal reported on Wednesday, citing an agency spokeswoman. The Commerce Department releases key figures on gross domestic product, inflation, personal income and spending, trade and new home sales, much of which are closely watched by investors and policymakers.
- China’s manufacturing sector is expected to have contracted for the first time in more than two years in December, reinforcing a deteriorating economic outlook and the need for more policy support to weather rising external and domestic pressures. China’s official manufacturing Purchasing Manager’s Index (PMI) for December is forecast to slip to 49.9, according to the median forecast of 27 economists