Financial Market Overview
14th January, 2019
- The Indian rupee extended losses to a near-one-month low against the dollar in afternoon trade, as an unexpected decline in Chinese trade data soured risk sentiment, pushing investors away from risk assets.
- The rupee changed hands at 70.80 to a dollar, against 70.4850 at previous close. It opened little changed at 70.48 and briefly rose to the day’s high of 70.4550 before falling to 70.8875, its lowest since Dec. 18.
- Indian shares fell in line with broader Asia on Monday after a shock contraction in Chinese exports raised fears of a sharper global slowdown, but the blow was cushioned by gains in Infosys Ltd after the IT major raised its revenue forecast and announced a buyback.
- The broader NSE index fell 0.79% to 10,709.70 while the benchmark BSE index lost 0.71% at 35,753.61.
- Most Asian shares extended fall after data earlier today showed Chinese exports and imports surprisingly declined in December. The Hang Seng lost 1.59%, while the Shanghai Composite was down 0.71%.
- European markets are also lower today. The CAC 40 is down 0.71% and London’s FTSE 100 is down 0.40% while Germany’s DAX is lost 0.58%.
- Meanwhile, Brent crude was down 0.93% at $59.92, adding to Friday’s 2% retreat as weak Chinese data renewed concerns of global economic growth slowdown.
- The dollar index was little changed at 95.56, after 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.
- The British pound gained 0.15% to $1.2834 at the start of what is expected to be a highly volatile week. Prime Minister Theresa May must win a vote in parliament on Tuesday to get her Brexit deal approved or risk a chaotic exit for Britain from the European Union. The numbers are not in May’s favor and her chances of winning the vote look extremely slim.