Financial Market Overview
24th August, 2018
- The Indian rupee posted its biggest weekly rise in six weeks against the dollar, as foreign fund inflows erased losses triggered after the Federal Reserve’s latest meeting minutes hinted at an interest rate hike next month, boosting demand for the U.S. currency.
- The rupee settled at 69.9050 to a dollar, against 70.11 at close yesterday. It fell to the day’s low of 70.23 earlier today, before erasing losses and rising to the day’s high of 69.89 amid rebound in the Chinese yuan and on dollar sales by foreign and private banks, likely on behalf of their corporate and custodian clients.
- Indian shares closed lower on Friday after four straight sessions of gains, as investors took a breather following a record-setting spree.
- At the close of market hours, the Sensex ended lower by 84.96 points or 0.22% at 38251.80, while the Nifty was down 25.65 points or 0.22% at 11557.10. The market breadth was negative as 1,166 shares advanced, against a decline of 1,496 shares, while 197 shares were unchanged.
- Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.85% and the Shanghai Composite rose 0.18%. The Hang Seng lost 0.43%
- European markets are higher today with shares in France leading the region. The CAC 40 is up 0.43% while London’s FTSE 100 is up 0.17% and Germany’s DAX is up 0.17%.
- Foreign investors have remained net buyers of Indian equity and bonds so far in August, having bought $169.66 million of local shares and $686.89 in bonds, after heavy selling in first of 2018.
- The dollar index was last trading down 0.3%, after rising half a percent yesterday, ahead of Fed chair Jerome Powell’s speech at Fed’s annual policy symposium in Jackson Hole, Wyoming, after market hours.
- The benchmark Brent crude oil contract was up 1.1% at $75.57 per barrel. The contract had posted its biggest single-session rise in two months earlier this week and has gained by over 6% in the last seven sessions.