Dec 07 2018

Rupee Logs Worst Week In 2 Mths On Risk Aversion

Financial Market Overview

07th December, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee logged its biggest weekly fall in two months against the dollar, on a broad selloff in regional and local equities, prompted by increasing doubts over the likely success of U.S.-China trade negotiations and caution ahead of a meeting between oil producing cartel OPEC and its allies.
  • Decline in Brent crude oil prices below $60 per barrel yesterday help the rupee trim some losses to end higher against the dollar today.
    The rupee settled at 70.80 to a dollar against 70.90 at previous close.
  • The currency opened at 70.55 and rose to day’s high of 70.44, before falling to an intraday low of 70.81. Most Asian currencies ended flat to higher against the greenback. The local unit snapped a three-week winning streak, dropping 1.7%, marking its biggest weekly decline since week ended on Oct. 5.

 Indian Equities:-

  • Indian shares ended higher on Friday, boosted by a surge in Kotak Mahindra Bank Ltd shares on a report that Warren Buffett’s Berkshire Hathaway Inc might take a stake in the private-sector lender. The broader NSE index closed 0.87 percent higher at 10,693.70, while the benchmark BSE index ended up 1.02 percent at 35,673.25.
  • For the week, the NSE index ended 1.7 percent lower, while the BSE index saw a fall of 1.4 percent.
  • Nifty Media is trading in the green aided by gains from Zee Entertainment which jumped 2 percent followed by EROS International Media, DEN Networks, Jagran Prakshan, UFO Moviez, INOX Leisure and Sun TV Network

 Global Markets:-

  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.76% while France’s CAC 40 is up 1.58% and Germany’s DAX is up 0.91%.
  • The S&P 500 and Dow industrials ended slightly negative but well above their session lows in volatile trading on Thursday as the arrest of a Chinese technology executive fanned fears of tensions between the United States and China over trade, while some big technology and Internet shares posted gains.
  • The Dow Jones Industrial Average fell 78.05 points, or 0.31 percent, to 24,949.02, the S&P 500 lost 4.1 points, or 0.15 percent, to 2,695.96 and the Nasdaq Composite added 29.83 points, or 0.42 percent, to 7,188.26.
  • Germany opposes excluding any manufacturers and technologies from the planned construction of 5G mobile networks, a spokesman for the interior ministry said, in an important vote of support for Chinese suppliers led by Huawei Technologies.
  • The comments come after U.S. allies like Australia, New Zealand and Japan restricted Huawei’s access to their markets and the company’s chief financial officer was arrested in Canada facing possible extradition to the United States.
  • The euro zone economy grew at its slowest pace in four years in the third quarter of 2018, while employment growth also eased during the period, data released by the European Union statistics agency Friday showed, confirming earlier estimates. Euro zone gross domestic product (GDP) rose by 0.2 percent in the July-September period, Eurostat reported, confirming its earlier preliminary estimates