Oct 15 2018

Rupee ended lower tracking surge in oil prices; Nations trade deficit narrowed to 5-month low

Financial Market Overview

15th October, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee fell for the first time in four sessions against the dollar, tracking a rebound in crude oil prices amid waning appetite for risk assets in global markets. However, data showing trade deficit narrowing to a five-month low in September helped the local unit cut its losses.
  • The rupee settled at 73.83 to a dollar against 73.56 at close on Oct. 12. The currency fell to day’s low of 74.08, but recouped some losses after the trade data. Other Asian currencies also slipped against the dollar.
  • India’s trade deficit narrowed to a five-month low of $13.98 billion in September, even as exports fell on year, according to an official statement.

Indian Equities:-

  • Indian shares ended higher for a second straight session on Monday after a weak start, in a recovery led by IT stocks benefiting from a depreciating rupee, while consumer discretionary stocks capped the gains.
  • The benchmark BSE index closed up 0.38 percent at 34,865.10, while the broader NSE index ended 0.38 percent higher at 10,512.50

Global Markets:-

  • European markets are mixed today. The SMI is down 0.28%, the Spain’s IBEX35 down by 0.19%, the France’s CAC40 is off 0.16%, the London’s FTSE100 is trading lower by 0.10% while the Germany DAX and Eurozone’s STOXX50 both are higher by 0.33% and 0.17% respectively.
  • The dollar index was trading 0.2% lower, reversing early gains as Japanese yen gained on increasing safe-haven bets.
  • The euro and pound sterling rebounded from its early losses. Over the weekend Britain was unable to clinch a Brexit deal with European Union in a run up to a key European Unit summit had weighed on the currencies.
  • Global markets will focus on U.S. retail sales data due today and minutes of Federal Reserve’s latest meeting due on Oct. 17.