Financial Market Overview
4th January, 2019
- The Indian rupee extended gains against the dollar in afternoon trade, on greenback sales by some foreign banks amid increasing expectation that the Federal Reserve could begin reversing its rate tightening regime soon amid weak U.S. economic data.
- The rupee changed hands at 69.85 to a dollar, against 70.19 at yesterday’s close. It opened at 69.96 and extended gains to 69.76.
- Indian shares traded higher on Friday after two straight sessions of sharp falls with gains in financials outweighing losses in IT stocks.
- The broader NSE index was up 0.42% at 10,716.95, while the benchmark BSE index was 0.44% higher at 35,670.00.
- Asian markets are mixed today with shares in Hong Kong leading the region. The Hang Seng is up 2.07%. China’s Shanghai Composite finished 2.05% higher while Japan’s Nikkei closed 2.26% lower.
- European markets are higher today. The FTSE 100 gained 1.07%, the CAC 40 was up 1.11% while DAX gained 1.17% and IBEX35 was up 1.05%.
- The dollar index traded little lower at 96.22 after slipping more than half-a-percent yesterday, following weak U.S. factory activity data that added to the already existing concerns over global growth slowdown.
- The investors now await key U.S. jobs report due later today. Markets will also watch for comments from Fed chair Jerome Powell today to access U.S. central bank’s further path on rates this year.
- Hopes of a trade talks between the U.S. and China soothed risk sentiments. China’s commerce ministry said today that it would hold vice-ministerial level trade talks with Washington next week on Jan.7 and Jan. 8 in a bid to resolve trade feud between two economies.
- The benchmark Brent crude oil contract gained today amid ease in jitters as China likely to hold talks with U.S. The contract was last trading 1.93% higher at $57.03 per barrel.