Financial Market Overview
5th November, 2018
- The Indian rupee extended fall against the dollar in afternoon trade, as importers bought the greenback and local shares declined in line with regional peers following stronger-than-expected U.S. jobs data.
- The rupee was trading at 73.0750 to a dollar, against 72.4350 at previous close. It opened lower 72.80 and extended fall to the day’s low of 73.11.
- Indian shares fell on Monday in line with broader Asian markets after posting their best week since mid-2016, as investors were subdued ahead of a key U.S. Federal Reserve meeting.
- The broader NSE index was down 0.34% at 10,517.15, while the benchmark BSE index was 0.24% lower at 34,929.07.
- Asian stocks sank as fears of faster rate hikes in the United States and uncertainty around the Sino-U.S. trade war deterred investment in riskier assets. The Hang Seng lost 2.33% while the Shanghai Composite was 0.41% down.
- European markets finished mixed as of the most recent closing prices. The DAX gained 0.06%, IBEX35 gained 0.33% while the FTSE 100 lost 0.13% and CAC lost 0.02%.
- Crude oil prices continued to fall after the start of U.S. sanctions against Iran was offset by waivers to eight nations including India. The waiver comes at a time when there are concerns of oversupply after OPEC members increased production last month to the highest since December 2016. The benchmark Brent crude oil contract was 0.40% lower at $72.54 per barrel.
- Worries on the pace of U.S. monetary tightening heightened after the world’s largest economy reported robust jobs growth for October. The 10-year Treasury yield rose by the most in a month on Nov. 2, rising to 3.2240%. It was last steady at 3.1970%.The dollar index was 0.1% lower, after an overnight gain of 0.3%.
- Pound sterling gained 0.35% on growing hopes of a smooth Brexit while euro traded little changed.