Financial Market Overview
14th September, 2018
MARKETS AT Noon:-
- The Indian rupee extended gains against the dollar in afternoon trade and was headed for a second consecutive session of rise, on improved sentiment following lower-than-expected domestic and U.S. retail inflation.
- Investors await Prime Minister Narendra Modi’s likely economic review meeting over the weekend and possibility of measures to stem the ongoing depreciation in the rupee.
- The rupee was trading at 71.6175 to a dollar against 72.19 at close on Sep. 12. It rose to as much as 71.5350 so far intraday, also highest since Sep. 5. The currency had hit a record low of 72.92 on Sep. 12.
- Indian shares rose on Friday as the rupee strengthened after crude prices fell sharply overnight and the United States and China looked set to launch a new round of trade talks amid an escalating tariff row.
- The broader NSE index was up 0.82 percent at 11,463.25 while the benchmark BSE index was 0.62 percent higher at 37,951.50.
- Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.82%, the Hang Seng rosed by 1.06% and the Shanghai Composite lower by 0.18%.
- European markets are trading higher today. The France CAC40 is trading higher by 0.39% followed by the London’s FTSE100 at 0.39%, the Germany’s DAX at 0.38% and The Spian’s IBEX35 is trading up by 0.19%.
- Emerging currencies, like the South African rand and the Mexican peso, held onto to gains having surged, as investors in emerging markets registered relief that Turkey’s central bank had hiked its policy rate to 24 percent to restore confidence in the lira.
- The nation’s retail inflation rate rose 3.69% last month, slowest pace in 10 months and below the 3.86% forecast. The August print was slower than July’s 4.17% reading and below the nation’s rate-setting Monetary Policy Committee’s inflation target.
- Wholesale inflation rate rose 4.53% on year in August, the slowest pace of annual expansion in four months and easing from an annual 5.09% increase in July.
- The benchmark Brent crude oil contract fell almost 2% overnight on demand concerns amid ongoing trade dispute between U.S. and China. It was last up 0.2% at $78.37 per barrel.
- The dollar index was last trading little changed after closing at its lowest level in one-and-a-half month yesterday, following soft U.S inflation data.