Oct 18 2017

Rupee logs biggest weekly fall in 3 on new Fed chief talks

Financial Market Overview

18th October, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee posted its biggest weekly decline in three against the dollar in a holiday-truncated week, as reports U.S. President Donald Trump may choose a policy hawk to lead the Federal Reserve lifted demand for the greenback.
  • The rupee settled at 65.0350 to a dollar, against 65.02 at the previous close. It had risen to a day’s high of 64.95, before falling to 65.16. Most other Asian currencies were mixed against the greenback.
  • On a weekly basis, the rupee fell 0.17%, marking its biggest weekly decline since the week ended Sep. 29. Indian financial markets will remain shut tomorrow and on Oct. 20 for Diwali holidays.

Indian Equities:-

  • India’s NSE index snapped a four-day winning streak to end lower on Wednesday, after a rise in bad loans at Axis Bank Ltd sparked concerns about the recovery of stressed assets in the country’s banking sector.
  • The broader NSE index ended 0.23 percent lower at 10,210.85, after three straight record-breaking sessions, while the benchmark BSE index closed down 0.08 percent at 32,584.35, its second consecutive session of decline.
  • Axis continued to weigh on the indexes throughout the session, falling 9.5 percent as other banks followed suit. ICICI Bank Ltd was down nearly 4 percent.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.55% while Germany’s DAX is up 0.50% and London’s FTSE 100 is up 0.38%.
  • Asian markets finished higher today with shares in China leading the region. The Shanghai Composite is up 0.29% while Japan’s Nikkei 225 is up 0.13% and Hong Kong’s Hang Seng is up 0.05%.
  • The pound slid lower against the dollar on Wednesday after the latest UK jobs report showed that wage growth is still lagging behind inflation, tempering expectations for an interest rate hike by the Bank of England.
  • The Office for National Statistics said average earnings, including bonuses, rose by an annual 2.2% in the three months to August. Excluding bonuses, earnings rose by 2.1%. Wage growth has steadily fallen behind inflation which rose 3% in September, its highest level in more than five years. The employment report also showed that the UK unemployment rate held steady at 4.3% in the three months to August, the lowest level in 42 years.