Financial Market Overview
29th November, 2018
- The Indian rupee settled above a key psychologically-important level of 70 to the dollar for the first time in more than three months, as remarks from Federal Reserve Chair Jerome Powell tapered rate hike bets in the world’s biggest economy.
- The rupee settled at 69.84 to a dollar, its highest since Aug. 21, and against 70.62 at previous close. The currency opened sharply higher and strengthened to breach the 70-level, rising to the day’s high of 69.78. It briefly fell to the day’s low of 70.15 in early trade, on greenback purchases by at least two state-run banks and a private lender, apparently on behalf of the central bank and a few importers.
- The market staged spectacular performance on last day of November series as benchmark indices rallied more than a percent, continuing uptrend for the fourth consecutive session on November 29.
- November has turned out to be the best series for the market in the current calendar year, as the Nifty50 climbed over 7 percent to move from 10,100 to near 10,900 levels.
- The 30-share BSE Sensex rallied 453.46 points or 1.27 percent to 36,170.41 and the 50-share NSE Nifty gained 129.80 points or 1.21 percent to close at 10,858.70.
- European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.67% while France’s CAC 40 is up 0.65% and Germany’s DAX is up 0.29%.
- Federal Reserve Chair Jerome Powell boosted U.S. stock markets on Wednesday when he said the policy rate is now “just below” estimates of a level that neither brakes nor boosts a healthy economy, The S&P 500 and Dow posted their biggest percentage gains in eight months, while the Nasdaq saw its largest advance in just over a month following Powell’s speech to the Economic Club of New York.The Dow Jones Industrial Average rose 617.7 points, or 2.5 percent, to 25,366.43, the S&P 500. gained 61.61 points, or 2.30 percent, to 2,743.78 and the Nasdaq Composite added 208.89 points, or 2.95 percent, to 7,291.59.
- Gold rose on Thursday after Federal Reserve Chair Jerome Powell’s comments boosted perception the central bank would go slow on interest rate hikes next year, while palladium was trading at record levels due to a shortage in supply. Spot gold was up 0.3 percent at $1,224.86 per ounce . U.S. gold futures were steady at $1,224.1 per ounce.
- The dollar recovered against its rivals on Thursday as caution before a G20 meeting prompted investors to buy back the currency after comments by the Federal Reserve chief were seen as a sign that a rising trend in U.S. rates may be coming to a close. The dollar recovered against its rivals on Thursday as caution before a G20 meeting prompted investors to buy back the currency after comments by the Federal Reserve chief were seen as a sign that a rising trend in U.S. rates may be coming to a close.