Financial Market Overview
27th December, 2018
- The Indian rupee extended fall against the dollar in afternoon trade, as banks’ greenback demand on behalf of importers ahead of currency futures expiry added to the adverse impact from the Brent crude oil’s sharpest rally in over two years.
- The rupee changed hands at 70.35 to a dollar, against 70.07 at the previous close. The currency opened at 70.2025 and traded in 17-paisa band so far.
- Indian shares gained on Thursday, tracking broader Asian markets as positive holiday sales data in the U.S. coupled with an attempt by the White House to mend its relationship with the Federal Reserve brought some much-needed relief to investors.
- The broader NSE index was up 0.64% at 10,798.15, while the benchmark BSE index was 0.65% higher at 35,881.62.
- Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 3.88%, while the Hang Seng led the Shanghai Composite lower. They fell 0.73% and 0.61% respectively.
- European markets are mixed today. The DAX was down 0.23% while the FTSE 100 gained 0.38%. The CAC 40 was up 1.13% while IBEX35 gained 0.58%.
- The benchmark Brent crude oil contract yesterday posted its best day in more than two years, tracking gains in U.S. stocks indices. The contract had fallen to a 17-month low of $49.93 per barrel yesterday, before rebounding nearly 8% to $54.47. The contract traded 1.40% lower at $53.71 per barrel.
- The dollar index fell 0.2% to 96.82. It had gained 0.5% overnight, tracking a surge in U.S. Treasury yields amid positive sentiments for the U.S. economy. The 10-year U.S. Treasury yield rose five basis points from its previous close.
- Investors also took cues from a report that said a U.S. trade team will travel to Beijing in the week of Jan. 7 to hold talks with Chinese officials, easing fears about an escalation of a trade war between the two nations. Chinese commerce ministry said that the two nations will meet face-to-face next month.