Financial Market Overview
18th December, 2018
- The Indian rupee marked its biggest single-session gain in more than five years against the dollar, as crude oil prices slumped to a 14-month low.
- The greenback slipped ahead of the Federal Reserve’s policy meet that starts today. The rupee settled at 70.44 to a dollar in Mumbai, its highest since Nov. 30, and against 71.55 at close yesterday.
- It opened higher at 71.33 and extended gains to day’s high of 70.41, but pared some advances earlier in the day after at least two state-run lenders bought dollars, likely on behalf of the Reserve Bank of India. The local unit rose 1.5% today, its biggest one-day jump since Sep. 19, 2013. Most Asian currencies also ended higher against the greenback.
- Sharp buying in last hour helped equity benchmarks end the session with gains of 0.20 percent. The Nifty ended above 10,900.
- A further dip in crude oil prices, following fears of economic slowdown in global economies helped the market extend their gains. In fact, the market managed to reverse all of its losses through the session. On an intraday basis, the Sensex fell over 200 points
- At the close of market hours, the Sensex was up 77.01 points or 0.21% at 36347.08, and the Nifty up 20.30 points or 0.19% at 10908.70. The market breadth was positive as 1416 shares advanced, against a decline of 1117 shares, while 160 shares were unchanged. Sun Pharma, Vedanta, and Bajaj Finance gained the most, while Infosys, Wipro, ZEE and UPL were the top losers.
- European markets are mixed. The DAX is higher by 0.44%, while the FTSE 100 is leading the CAC 40 lower. They are down 0.38% and 0.02% respectively.
- Wall Street’s three major indexes each slid more than 2 percent on Monday, with the benchmark S&P 500 closing at its lowest level in 14 months, on concerns about slowing economic growth ahead of a highly anticipated decision from the Federal Reserve later this week on the course of interest rate hikes. The Dow Jones Industrial Average fell 507.73 points, or 2.11 percent, to 23,592.78, the S&P 500 lost 54.12 points, or 2.08 percent, to 2,545.83 and the Nasdaq Composite dropped 156.93 points, or 2.27 percent, to 6,753.73.
- The German economy is cooling but there is no recession in sight, an economist at Ifo said on Tuesday after the institute’s monthly survey showed the business climate in Europe’s largest economy deteriorating. Klaus Wohlrabe said uncertainty had increased again and Britain’s upcoming departure from the European Union was at the top of the agenda.
- German business confidence deteriorated for the fourth straight month in December, according to survey data released on Tuesday, adding to concerns over the health of the euro zone’s biggest economy. The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of companies, declined to 101.0 from 102.0 in November. The reading was below expectations for 101.8. The current assessment sub-index fell to 104.7 from 105.4, compared to expectations for 104.9.
- Crude oil prices slipped further today, amid worries over supply. The benchmark Brent crude oil was trading 2.6% lower at $58.12, after dropping as much as to $57.20, its lowest since October 2017.