Financial Market Overview
10th January, 2019
- The Indian rupee rose for the first time in three days against the dollar, as exporters’ greenback sales in late trade and dovish minutes of the Federal Reserve’s latest meeting erased early losses from overnight spike in crude oil prices. The rupee settled at 70.41 to a dollar, against 70.46 at previous close. After a flat opening, it traded in a 70.32-70.66 to dollar band.
- Dollar sales by exporters in late trade after the USD/INR pair failed to break a key resistance around 70.65, helped some marginal rise in the rupee. The recent surge in crude prices and expectation that oil prices will only rise further has promoted importers to step up greenback purchases that weighed on the unit for most of the session.
- Indian shares snapped four sessions of gains to settle lower on Thursday as investors remained cautious ahead of technology giant Tata Consultancy Services’ results.
- The benchmark BSE index closed the session 0.29 percent lower at 36,106.41, while the broader NSE index ended down 0.31 percent at 10,821.60. Shares of TCS, which is due to report quarterly results this evening, finished the session 0.21 percent lower.
- European markets are lower today with shares in France off the most. The CAC 40 is down 0.61% while Germany’s DAX is off 0.31% and London’s FTSE 100 is lower by 0.12%.
- Wall Street rallied for a fourth session on Wednesday, propelled by Apple, chipmakers and other trade-sensitive stocks after signs of progress in trade talks between the United States and China. The benchmark S&P 50, now in its longest daily winning streak in nearly four months, is up about 10 percent from a 20-month low it touched around Christmas, lifted by hopes for a deal between the world’s two largest economies, which eased some worries over the impact of the trade spat on global growth.
- The Dow Jones Industrial Average rose 0.39 percent to finish at 23,879.12 points, while the S&P 500 gained 0.41 percent to 2,584.96. The Nasdaq Composite added 0.87 percent to 6,957.08.
- China’s producer price index and the consumer price index both grew less than expected in December, official data showed on Thursday in Asia. The Producer Price Index in December, which measures price increases before they reach the consumer, was up 0.9% from a year ago, lower than the expected 1.6%. The Consumer Price Index, a gauge of prices for goods and services, rose 1.9% year on year in December, compared to 2.2% in November.
- Federal Reserve policymakers expressed more willingness to adopt a slower pace of rate hikes at their December meeting, as concerns about global growth and subdued inflation made the timing of future rate hikes less certain, minutes published Wednesday showed.
- The Fed raised its benchmark rate to a range of 2.25% to 2.5% at the conclusion of its two-day policy meeting on Dec. 19 and signalled two rate hikes were on the table for 2019.