Dec 12 2018

Rupee Falls To 4-Wk Low As Rising Bets Over Interest Rate Cuts

Financial Market Overview

12th December, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee fell for a third day to a four-week low against the dollar, on rising bets over interest rate cuts after appointment of a former bureaucrat as the new governor of the central bank, seen as dovish by analysts, amid prediction of inflation easing going ahead.
  • The rupee settled at 72.01 to a dollar, its lowest since Nov. 14, against 71.85 at previous close. It opened at 72.20 and traded in a 33-paise range today. Most Asian currencies ended higher against the greenback amid positive development between U.S.-China over trade deal.
  • Traders await the release the India’s November inflation data that will be released after market hours today. November inflation print to be lower at 2.80% from October’s 3.31%.

 Indian Equities:-

  • Bulls took charge right from the word go and consistently traded in the green. But intense buying in the last hour helped the market end on an even stronger note. The Nifty, not only managed to clock 10,700, but also closed above this mark.
  • At the close of market hours, the Sensex closed up 629.06 points or 1.79% at 35779.07, while the Nifty rose 188.40 points or 1.79% at 10737.60. The market breadth was positive as 1,882 shares advanced, against a decline of 645 shares, while 139 shares were unchanged.

 Global Markets:-

  • European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 1.77% while London’s FTSE 100 is up 1.08% and Germany’s DAX is up 1.08%.
  • The S&P 500 and Dow ended a volatile session down slightly on Tuesday as investor optimism over China-U.S. trade talks was offset by U.S. President Donald Trump’s threat to shut down the U.S. government and by political uncertainty in Britain.
  • The Dow Jones Industrial Average fell 53.02 points, or 0.22 percent, to 24,370.24, the S&P 500 lost 0.94 points, or 0.04 percent, to 2,636.78 and the Nasdaq Composite added 11.31 points, or 0.16 percent, to 7,031.83.
  • President Donald Trump said on Tuesday it would be a mistake if the Federal Reserve raises interest rates when it meets next week, as it is expected to do, continuing his criticism of the U.S. central bank.Trump said he needed the flexibility of lower interest rates to support the broader U.S. economy as he fights a growing trade battle against China, and potentially other countries.
  • China has agreed to cut tariffs on U.S.-built cars and auto parts to 15 percent from the current 40 percent, a Trump administration official said on Tuesday, setting the stage for a new talks aimed at easing the bitter trade war between the world’s two largest economies Washington still had not received documentation nor timing details of the tariff reduction, the official said, speaking on condition of anonymity.  China’s plan was communicated during a phone call between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday morning Beijing time.