Financial Market Overview
27th November, 2018
- The Indian rupee was trading lower at 70.95/70.96 against dollar, versus 70.87/70.88 at previous close, as greenback demand from foreign banks and importers outweighed impact of dollar sales by exporters. Risk sentiment also remained muted on Trump’s remarks on trade tariffs.
- BSE Sensex and the broader NSE index were trading 0.22% and 0.23% lower, respectively, following losses in most Asian shares as U.S. President Donald Trump’s comments to impose new tariffs on China hurt risk appetite. Pharmaceutical companies such as Sun Pharmaceuticals led the losses in local indices.
- Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.64%, while the Hang Seng led the Shanghai Composite lower. They fell 0.25% and 0.04% respectively.
- European markets are mixed today. The DAX is up 0.23% while the FTSE 100 gains 0.02%. The CAC 40 is off 0.05%.
- Some overseas investors appear to be taking a pass on U.S. debt securities just as the administration of President Donald Trump embarks on a record sale of Treasury bills, notes and bonds to pay for its big tax cuts and spending increases. Top foreign holders of Treasuries like China and Japan have shrunk their portfolios of U.S. government bonds this year, and a recent barometer of participation in Treasury auctions suggests overseas buyers have not been showing up in force, according to Treasury Department data.
- Trump’s tough rhetoric bolstered support for safe haven currencies with the dollar index, a gauge of its value versus six major peers, keeping steady at 97.06 – near its highest since Nov. 15.
- Most regional currency markets were negatively impacted by the stronger greenback, as the dollar held gains it made on Trump’s comments watering down hopes of a near-term trade truce with China.
- The British government’s Brexit deal with Brussels is likely to mean Britain’s economy will be 3.9 percent smaller by 2030 than if it were to stay in the European Union, a leading think tank said on Monday.
- The hit would be the equivalent of losing the economic output of Wales or the contribution of London’s financial services industry.