Financial Market Overview
15th January, 2019
- The Indian rupee slipped for a third straight session to a fresh near-one-month low against the dollar, as importers stepped up greenback purchases, while weak German growth data weighed on the euro, lifting the U.S. currency.
- The rupee settled at 71.04 to a dollar, lowest since Dec. 17, and against 70.93 at previous close. The currency opened higher at 70.78, but declined to 71.16. However, it trimmed some losses after at least one state-run bank and a private lender sold dollars at around 71.15 per dollar. Other Asian currencies advanced against the dollar.
- It’s a strong close for the market, with the Nifty ending just short of 10,900. All sectoral indices ended in the green, with maximum gains visible among IT and energy names, while metals and banks, too, closed with sharp gains.
- At the close of market hours, the Sensex was up 464.77 points or 1.30% at 36318.33, while the Nifty was higher by 149.20 points or 1.39% at 10886.80. The market breadth was positive as 1548 shares advanced, against a decline of 996 shares, while 166 shares were unchanged.
- European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.24% while France’s CAC 40 is up 0.20% and Germany’s DAX is up 0.06%.
- The German economy grew by 1.5 percent in 2018, the weakest rate in five years and markedly slower than the previous year, preliminary data showed on Tuesday, in a sign that exporters in Europe’s largest economy are being hit by trade tensions. German companies are struggling with a cooling of the global economy and tariff disputes triggered by U.S. President Donald Trump’s ‘America First’ policies. The risk that Britain will leave the European Union without a deal in March is another uncertainty. The preliminary GDP estimate published by the Federal Statistics Office was in line with market expectations and compared with a growth rate of 2.2 percent in 2017.
- U.S. stock index futures were pointing to a lower open to kick off the trading week, after disappointing data out of China re-ignited concerns about slowing global growth. China’s exports unexpectedly fell the most in two years in December, while imports also contracted. This increased concerns U.S. tariffs were taking a bite out of the world’s second-largest economy. Other data showed China’s biggest trade surplus with the United States on record in 2018, which could cause U.S. President Donald Trump to try to increase pressure on Beijing in the trade war between the two countries.
- The dollar Weaken against its peers by more than 1 percent since the start of the year. The dollar index on Tuesday strengthened by 0.2 percent to 95.84.