Financial Market Overview
29th November, 2018
- The Indian rupee extended gains against the dollar to a three-month high in afternoon trade, on greenback sales by exporters amid remarks from Federal Reserve Chairman Jerome Powell that hinted a slower rate-hike cycle in the world’s biggest economy.
- The rupee changed hands at 69.85 to a dollar, its highest since Aug. 27, and against 70.62 at close yesterday.
- Indian shares rose over 1% on Thursday, tracking broader Asian markets that rallied after the U.S. Federal Reserve chairman’s comments were interpreted as a dovish shift, and ahead of the expiry of futures and options contracts later in the day.
- The broader NSE index was up 1.35% at 10,874.15, while the benchmark BSE index rose 1.43% to 36,228.71.
- Other Asian shares are lower today. The Hang Seng is down 0.87% while China’s Shanghai Composite is down 1.32%.
- European markets are higher today. The DAX is up 0.71% while the FTSE 100 gains 0.82%. The CAC 40 is up 1.03% and IBEX35 gains 0.78%.
- The benchmark Brent crude oil prices fell 2.4% yesterday and was last trading 1.06% lower at $58.14 per barrel. There has been an over 30% drop in Brent prices from its peak of $86.74 hit in early October. Focus will now remain on the Organization of the Petroleum Exporting Countries meeting on Dec. 6 to consider a proposal to trim output.
- The dollar index was last trading 0.1% lower at 96.72. Minutes of the Fed’s latest meeting are due tomorrow, while the U.S. central will meet on Dec. 18-Dec. 19 for its next monetary policy review, when the authority is widely expected to hike interest rates by 25 basis points, while the investors will look for cues of pace of rate hikes in 2019.
- Investors now await the crucial meeting between U.S. President Donald Trump and China’s Xi Jinping later this week on the sidelines of the G20 summit in Argentina.