Financial Market Overview
28th December, 2018
- The Indian rupee rose for a second straight week against the dollar in a holiday-truncated week, tracking strength in regional and local shares amid volatile crude oil prices.
- The rupee settled at 69.94 to a dollar today, against 70.35 at previous close. Most Asian currencies ended higher against the dollar. For the week, the domestic currency gained 0.3%, adding to last week’s gains of over 2%. India’s financial and most Asian markets were closed on Dec. 25 for Christmas. Recovery led by Wall Street helped global risk-on rally, supporting the rupee.
- However, demand for the dollar/rupee pair erupted below 70 levels by state-run lenders. The US shutdown has been the main event being watched by the world. Traders will also focus on trade talks between U.S. and China.
- It’s a consecutive session of positive close for the market on Friday. The Nifty has kicked off January series on a strong note, ending above 10,850-mark.
- Strong global cues, weaker crude as well as strengthening rupee were some of the primary factors behind the market’s rally.
- At the close of market hours, the Sensex was up 269.44 points or 0.75% at 36076.72, while the Nifty was higher by 80.10 points or 0.74% at 10859.90. The market breadth was narrow as 1546 shares advanced, against a decline of 1049 shares, while 163 shares were unchanged
- European shares edged up on Friday, buoyed by a bounce on Wall Street as a turbulent week drew to a close and investors licked their wounds after the region’s benchmark STOXX 600 sank to its lowest level since U.S. President Donald Trump’s election. European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 1.73% while Germany’s DAX is up 1.72% and London’s FTSE 100 is up 1.65%.
- indexes roaring back late from steep losses earlier in the session, as a late-year rebound in equities continued for a second day. The Dow Jones Industrial Average rose 256.19 points, or 1.12 percent, to 23,134.64, the S&P 500 gained 20.45 points, or 0.83 percent, to 2,488.15 and the Nasdaq Composite added 25.14 points, or 0.38 percent, to 6,579.49.
- Inflation in Germany’s most populous regions slowed in December, just as the European Central Bank ended a crisis-fighting bond purchase scheme after four years and as global markets slumped. The annual inflation rate in Germany’s most populous state, North Rhine-Westphalia, slowed to 1.8 percent in December from 2.4 percent a month earlier, preliminary regional statistics office data showed on Friday. The euro zone will publish preliminary inflation data for December on Jan. 4. The headline figure is expected to slow to 1.8 percent after 1.9 percent in November.
- Japan’s industrial output contracted in November and partially reversed the previous month’s gain, while retail sales slowed sharply as increasing global risks drag on demand and threaten the country’s export-reliant economy. The 1.1 percent month-on-month fall, pressured by a pullback in production of general purpose machinery, compared with a median market forecast of a 1.9 percent decline, following a 2.9 percent increase in October, the data showed.