Financial Market Overview
14th January, 2019
- The Indian rupee slumped to a near-one-month low against the dollar, as investors’ appetite for risk assets waned after weaker-than-expected Chinese trade data.
- The rupee settled near the day’s low of 70.93 to a dollar, its lowest since Dec. 17, from 70.4850 at previous close. The currency opened little changed at 70.48 and briefly rose to 70.4450 before falling to the day’s low of 70.94.
- Indian shares settled lower on Monday mirroring losses across the globe after an unexpected contraction in Chinese exports raised fears of a sharper global slowdown, but the blow was cushioned by gains in Infosys Ltd.
- The benchmark BSE index closed the session 0.43% lower at 35,853.56, while the broader NSE index ended 0.53% down at 10,737.60.
- European markets are lower today. The CAC 40 is down 0.86% while Germany’s DAX is off 0.66% and London’s FTSE 100 is lower by 1.05%.
- The benchmark Brent crude oil contract advanced nearly 6% last week on hopes of trade truce between the U.S. and China and output cut by key oil producers. However, it was last trading 1.26% lower at $59.72 per barrel, as weak Chinese data renewed concerns of global economic growth slowdown.
- The dollar index was trading down 0.1% at 95.55, extending last week’s 0.5% decline. The index is hovering near its lowest level in three months amid bets that the Federal Reserve is unlikely to raise rates in the coming months.
- Euro zone industrial output fell in November by more than expected, official data showed today, confirming the series of weak national data which have raised concerns about the bloc’s growth in the final quarter of the year.
- Investors will keep an eye on the British parliamentary vote to approve Prime Minister Theresa May’s Brexit deal tomorrow.