Financial Market Overview
22nd October, 2018
MARKETS AT CLOSE:-
- The Indian rupee fell against the dollar, rupee dragged by stronger U.S. Dollar and crude oil. Crude oil prices rise ahead of the U.S. sanctions on Iran and a stronger greenback due to ongoing uncertainty in the Eurozone.
- The rupee settled at 73.5550 to a dollar, against 73.32 at close on Oct. 19. The currency opened little changed but had risen to 73.19, highest since Oct. 3, on greenback sales by foreign banks.
- Today’s session was choppy as the rupee erased all initial gains to close in negative territory, mirroring the trajectory of domestic equities. The local unit is likely to weaken further amid fears over an uptick in crude oil prices and possibility of higher inflation as pointed out by the MPC minutes of the last meeting.
- Weakness in the last hour of trade dragged equity benchmarks to low points. The Nifty ended the session below 10,250-mark, while the Sensex shed over 180 points. Against this, the market had a strong start, with the Sensex and Nifty having risen a percent each.
- At the close of market hours, the Sensex closed down 181.25 points or 0.53% at 34134.38, while the Nifty fell 58.20 points or 0.56% at 10245.30. The market breadth was negative as 832 shares advanced, against a decline of 1,758 shares, while 980 shares were unchanged.
- European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.67% while Germany’s DAX is up 0.60% and France’s CAC 40 is up 0.34%.
- Germany’s economy struggled in the third quarter on a dip in car manufacturing but the drivers of its recent expansion remain in place, so growth should rebound in the final three months of the year. European Union implementing a new motor vehicle emissions certification system, German auto makers struggled to gain regulatory clearance while production was also dampened by big dealership discounts to clear stock before the new rules came into effect.
- British households’ confidence in their finances worsened this month as their earnings from employment rose at the weakest rate since February, adding to growing signs of caution among consumers, a survey showed on Monday. The IHS Markit Household Finance Index, watched by the Bank of England as a gauge of consumers’ financial health, cooled to a three-month low of 45.1 from 45.7 in September, though the reading is still one of the highest since the survey’s 2009 launch.
- Average new home prices in China’s 70 major cities rose 0.9 percent in September from a month earlier, Reuters calculated from official data published on Saturday, slower than the previous month’s reading of 1.4 percent, which was the fastest growth in two years.