May 23 2018

Rupee at over 16-month low ahead of Fed meeting minutes

Financial Market Overview

23rd May, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was down to an over 16-month low of 68.30/68.31 per dollar, against its previous close of 68.04/68.05, as President Donald Trump expressed dissatisfaction over trade talks with China, while caution ahead of the release of the Federal Reserve’s May meeting minutes also weighed on the rupee.

Indian Equities:-

  • Indian shares fell on Wednesday pulled down by oil companies, while mining and energy conglomerate Vedanta Ltd hit an over 10-month low as protests against its copper plant in south India turned violent.
  • The broader NSE index dropped 0.26 percent to 10,509.45 , while the benchmark BSE index slipped 0.09 percent to 34,620.58.
  • Indian Oil fell 4.2 percent and HPCL dropped 6.2 percent, while refiner Oil and Natural Gas Corp Ltd was trading 2.8 percent lower.

Global Markets:-

  • Asian markets finished sharply lower today with shares in Hong Kong leading the region. The Hang Seng is down 1.82% while China’s Shanghai Composite is off 1.41% and Japan’s Nikkei 225 is lower by 1.18%.
  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 0.70% while France’s CAC 40 is off 0.60% and London’s FTSE 100 is lower by 0.46%.
  • Private sector economic activity in the euro zone accelerated at the slowest pace in 18 months in May, according to survey data released on Wednesday. Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, registered a reading of 54.1 this month, an 18-month low and down from 55.1 in April. Economists had forecast a reading of 55.0.
  • Private sector output in Germany deteriorated in May, as business activity rose at the weakest pace for over one-and-a-half years, according to survey data released on Wednesday. Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors registered a reading of 53.1 this month, a 20-month low and down from 54.6 in April. Economists had forecast a reading of 54.7.
  • EUR/USD drops near to 1.17 handle, lifting dollar index by 0.3%. Safe haven yen climbs past 110 versus dollar and US 10-year yield drops 5 basis points to near 3% level. Dollar index up 0.3%. Fed May minutes due later today, likely to provide explanations on central bank’s “symmetric” inflation target.