Financial Market Overview
08th January, 2019
- The Indian rupee logged its first loss in three sessions and dropped to a near-two-week low against the dollar, tracking persistent spike in crude oil prices that prompted importers to step up greenback purchases.
- The rupee settled at 70.20 to a dollar, its lowest since Dec. 27, and against 69.68 at yesterday’s close. The currency opened lower at 69.80 and extended losses to 70.23. Rupee has witnessed pullback from 69.25-69.30 levels on massive dollar purchases by importers and some central bank action cannot be ruled out. Volatility in crude prices and dollar index in an illiquid trade has also weighed on the rupee.
- The rupee to remain volatile in a range-bound trade as importers, which lost on opportunity to buy dollars in previous few sessions, to step up purchases.
- A recovery in the final hour of trade ensured that benchmarks maintained their positive streak. Among sectors, weakness was visible in energy, infra and IT names, while the Nifty Midcap index also fell one-fifth of a percent. At the close of market hours,
- The Sensex was up 130.77 points or 0.36% at 35980.93, and the Nifty up 30.40 points or 0.28% at 10802.20. The market breadth was narrow as 1248 shares advanced, against a decline of 1297 shares, while 173 shares were unchanged.
- European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.12% while London’s FTSE 100 is up 0.78% and Germany’s DAX is up 0.56%.
- The dollar index traded 0.2% higher after shedding 0.5% yesterday amid bets that the Federal Reserve was in no hurry to raise rates. Earlier this week, Fed Chairman Jerome Powell said that the authority was prepared to “adjust policy quickly and flexibly” if necessary, to keep the U.S. expansion on track. While the economy looks robust, the markets may be pricing in downside risks and that the Fed was “listening carefully.
- Euro zone economic sentiment deteriorated markedly and by more than expected in December, wrapping up a year that saw optimism falling every month, European Commission data showed on Tuesday, in a new sign of weakness for the bloc’s economy. In a bad sign for the bloc’ growth prospects in the last quarter of the year, euro zone economic sentiment eased to 107.3 points in December’ 12th consecutive monthly drop and the lowest level since January .
- Job openings are outnumbering unemployed workers across increasingly wide swaths of the United States, forcing businesses to rethink how they find workers, which could keep pressure on the Federal Reserve to raise interest rates despite a global economic slowdown. Labor Department on Tuesday is to release the latest data on job openings, from November.
- The report follows data released last week showing a surge in job growth in December and could help central bankers assess sometimes conflicting anecdotal reports about how hard firms must work to fill jobs.