Financial Market Overview
01st January, 2019
- The Indian rupee rose to a more-than-four-month high against the dollar in the first trading session of 2019, aided by the greenback’s overnight decline against major currencies.
- The rupee settled at 69.45 to a dollar its highest since Aug. 10, against 69.77 at close yesterday. The local unit also marked its third session of gains against the dollar.
- Volume remained thin as almost all major markets were shut for the New Year holiday. Volumes were impacted due to holiday in major markets but the dollar index movement, positive Dow Jones and optimistic Trump about trade war on the last day of 2018 was the key trigger for rupee to gain today. “Apart from the scheduled data releases, any development on U.S.-China trade deal front will be crucial for rupee, while any more uptick in oil prices will also impact the local currency.
- It’s a strong start to the New Year for equities as bulls took complete charge in the last hour of trade. The Nifty reclaimed 10,900-mark setting it on track to move towards 11,000 as well.
- Meanwhile, the Sensex ended above 36,000-mark. At the close of market hours, the Sensex was up 186.24 points or 0.52% at 36,254.57, while the Nifty was higher by 47.60 points or 0.44% at 10910.10. The market breadth was narrow as 1,437 shares advanced, against a decline of 1,091 shares, while 147 shares were unchanged.
- European markets are closed on New Year’s day.
- 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.
- China’s factory activity contracted for the first time in over two years in December, highlighting the challenges facing Beijing as it seeks to end a bruising trade war with Washington and reduce the risk of a sharper economic slowdown in 2019. The increasing strain on factories signals a continued loss of momentum in China, adding to worries about softening global growth, especially if the Sino-U.S. dispute drags on.
- U.S. light oil has become too cheap for Gulf Coast refiners to pass up. Fuel makers on the Gulf, home to the largest cluster of refineries in the world, processed oil with an average API.
- 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.
- Dollar index slipped 0.2% to 96.17 yesterday, lowest closing since November 7.
- Benchmark Brent rose 3% to $53.80 yesterday.
- Ten-year US yield slipped four basis points yesterday to 2.69%.