Financial Market Overview
16th November, 2018
- The Indian rupee registered a weekly gain against the dollar and rose for a fourth session to a fresh two-month high, as slump in crude oil prices eased worries over widening current account deficit and boosted dollar inflows by foreign portfolio investors.
- The rupee settled at 71.92 to a dollar, its highest since Sep. 14, against 71.98 at previous close. It traded in 71.70-71.99 to dollar band today, trimming some of its gains in late trade as banks pared their short dollar positions. The rupee had risen above the psychologically important level of 72 yesterday for first time in nearly two months. This week, the rupee rose 0.8%. Most Asian currencies also gained against the greenback today.
- Indian shares posted their best close in more than six weeks on Friday, powered by gains in the country’s biggest company by market value Reliance Industries Ltd. The broader NSE index closed 0.62 percent higher at 10,682.2, while the benchmark BSE index ended up 0.56 percent at 35,457.16 — their highest closing levels since Oct. 3.
- Both the indexes finished the week 0.9 percent higher. Shares of oil-to-retail conglomerate Reliance Industries climbed 2.8 percent, marking their best closing high since Oct. 17. HDFC Bank Ltd’s stock rose 1.5 percent, while that of Housing Development Finance Corporation Ltd climbed 1.9 percent to its highest close in two months.
- European markets are mixed today. The DAX is up 0.13% while the CAC 40 gains 0.10%. The FTSE 100 is off 0.02%.
- The United States ambassador to Japan defended his country’s trade policies on Friday, saying they were not protectionist and were aimed at creating a more level playing field for American companies. The United States is the most open major economy in the world,” Ambassador William Hagerty told reporters at the Japan National Press Club. Japan and other countries have benefited greatly from that openness. So I want to make sure that we don’t mistake our efforts to achieve reciprocity for protectionism.
- Euro zone inflation rose in October at its fastest pace in nearly six years, driven by energy prices, the European Union statistics agency said on Friday, confirming its earlier estimate. The core inflation measure which excludes energy and food was revised down.
- Eurostat said that consumer prices in the 19 countries sharing the euro rose 2.2 percent year-on-year in October after a 2.1 percent increase in September and a 2.0 percent gain in August. It was the biggest increase since December 2012.
- Japan’s exports likely rebounded in October after falls led by a series of natural disasters, a Reuters poll found on Friday, but worries over global demand and the U.S.-China trade war linger. Exports were forecast to rise 9.0 percent in October from a year earlier, the fastest pace of gain since January, the poll of 16 economists showed. In September, they declined a revised 1.3 percent. Imports likely jumped 14.5 percent in October from a year earlier, giving a trade deficit of 70 billion yen ($617.5 million).