Aug 31 2018

Rupee ended at a record-closing-low for the 3rd straight session

Financial Market Overview

31st August, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee plunged below 71-level against the dollar for the first time today, hurt by a slide in emerging market currencies led by the Turkish lira and Argentinean peso amid surging crude oil prices. Ongoing trade dispute between the U.S. and China also kept the Asian currencies under pressure.
  • The rupee settled at a record-closing-low for a third straight session of 70.99 to a dollar, against 70.74 at close yesterday. Intraday, it fell to 71-level, but had pared some losses on greenback sales by at least one large state-run bank and a private lender, likely on behalf of the Reserve Bank of India.

Indian Equities:-

  • Indian shares ended little changed on Friday, as global sentiment remained muted after U.S. President Donald Trump made fresh trade threats against China, while gains in tech and healthcare were offset by losses in energy and financial stocks.
  • The benchmark BSE index closed down 0.12 percent, while the broader NSE index ended 0.03 percent higher.

Global Markets:-

  • European markets are lower today. The France’s CAC40 is down 1.09%, the Euro-zone’s STOXX50 is lower by 0.88%, the Germany’s DAX fell by 0.78%, the SMI is off 0.62% , the Spain’s IBEX35 fells 0.59% the CAC40 is off 0.48% and the London’s FTSE100 is trading lower by 0.31%.
  • India’s April-July fiscal deficit totalled 5.40 trillion rupees, widening from 5.05 trillion rupees in the comparable year-earlier period, government data showed today.
  • Sell-off in emerging market currencies was sparked by fall in the Turkish lira and Russian Ruble earlier this month. The lira fell to record levels amid souring relations with the U.S while the Ruble fell to lowest in two-and-a-half years comes after Washington set out new sanctions on Moscow.
  • The benchmark Brent crude oil price rose 4% this month after 6.5% drop in July, as sanctions loomed on Iran may create supply disruptions and on lower U.S. output. It was last at $77.36 per barrel, hovering near a one-month high.
  • Inflation in the euro zone slowed in August, although the reading was unlikely to change the European Central Bank’s plan to wind up its asset purchase program this year. The bloc’s statistics agency Euro-stat said its consumer price index rose2.0%in August from the same month a year earlier. Analysts expected no change to July’s reading of 2.1%.