Financial Market Overview
06th October, 2017
MARKETS AT OPEN:-
- Indian rupee trade lower against the dollar in early trade, tracking overnight gains in the greenback that rose to a multi-week high on strong economic data amid hopes of progress on U.S. tax reforms and underpinned by strong Treasury yields; pair USDINR now at 65.25 against 65.14 previous close.
- Pair to tip in range between today 65.10-65.40.
- Frontline indices began the session on a positive note, with the Nifty reclaiming 9900 in the opening tick.
- The Sensex was up 51.66 points at 31643.69, while the Nifty was up 22.75 points at 9911.45. The market breadth was positive as 454 shares advanced against a decline of 132 shares, while 22 shares were unchanged.
- Asian stocks rose on Friday after optimism over U.S. tax reform plans lifted Wall Street shares to new highs. Japan’s Nikkei climbed 0.24 percent after setting a new two-year high, Australian stocks rose 0.82 percent and South Korea’s KOSPI advanced 0.9 percent.
- U.S. stocks were higher at the close on Thursday, as gains in the Technology, Financials and Consumer Services sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.50% to hit a new all time high, while the S&P 500 index added 0.56%, and the NASDAQ Composite index climbed 0.78%.
- European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.54% and the CAC 40 rose 0.30%. The DAX lost 0.02%.
- Dollar index little changed at 93.981, after rising to 94.016 in early trade, its strongest level since Aug. 17. Republican-controlled House of Representatives yesterday approved fiscal 2018 spending blueprint to help advance an eventual tax bill. Focus now on U.S. job data for September, due later today. Employment data expected to show slowdown in jobs growth, reflecting effects from Hurricane Harvey and Irma. According to survey of economists, jobs data will likely show that nonfarm payrolls increased by 90,000 jobs last month after rising by 156,000 in August.
- Further aiding sentiment for the greenback was the Commerce Department released data showing the U.S. trade gap fell 2.7% to $42.4 billion, the smallest since Sep 2016. In another report, Commerce Department said orders for non-defense capital goods excluding aircraft – seen as a measure of business spending plans – rose 1.1% in August against a 0.9% increase last month.