Financial Market Overview
5th February, 2019
- The Indian rupee extended gains against the dollar in thin afternoon trade, as higher local shares increased expectation of foreign fund inflows even as holiday in most Asian markets kept volumes muted.
- The rupee changed hands at 71.66 to a dollar, against 71.80 at previous close. The local unit opened at 71.70 and has so far traded in a 14-paisa range.
- Indian shares were little changed in afternoon trade as investors kept a cautious stance ahead of the three-day central bank policy meet, while gains in automobile stocks offset declines in telecom companies.
- The broader NSE index was up 0.30% at 10,944.85, while the benchmark BSE index was 0.24% higher at 36,671.38.
- Asian shares were subdued following a weeklong holiday in China for the Chinese New Year. Markets in Hong Kong are also closed today. Japan’s Nikkei 225 finished lower by 0.19%.
- European markets are mixed today. The CAC 40 is down 0.05%, London’s FTSE 100 is up 0.33% and Germany’s DAX is up 0.13% while Spain’s IBEX35 is down 0.26%.
- Crude oil prices continued stayed elevated, on expectations of supply cuts amid U.S. sanctions on Venezuela and production cuts from OPEC. It was last trading 0.02% higher at $62.52 per barrel.
- The dollar index was last trading steady at 95.93 after an overnight rise of 0.3%, as 10-year Treasury yield climbed above 2.70%.
- S. President Donald Trump and Fed Chairman Jerome Powell dined at the White House on Monday, a meeting which included Treasury Secretary Steven Mnuchin and Vice chair Richard Clarida and covered a variety of economic topics, the Fed said in a statement, but did not delve into expectations of future monetary policy decisions.