Financial Market Overview
4th October, 2018
- The Indian rupee stayed near lifetime low against the dollar in afternoon trade, in line with Asian peers, as upbeat U.S. economic data lifted the dollar index to a more-than-six-week high and boosted Treasury yields to its highest since 2011, feeding into fresh fears of foreign fund outflows.
- The rupee was trading at 73.64 to a dollar, against 73.34 at close yesterday. It plummeted to a record-low 73.81 but persistent dollar sales by state-run and private lenders at various levels, likely on behalf of the central bank, has helped limit further fall in the local unit.
- BSE Energy index, oil and gas, IT, finance, and auto stocks saw selling pressure while capital goods and metals bucked the trend and were trading in positive terrain.
- The broader NSE index was down 2.03% at 10637.85, and the benchmark BSE index was trading lower by 1.97% at 35267.38.
- Markets in China are closed today on account of National day. Shares in Hong Kong are lower today as the Hang Seng falls 1.78%.
- European markets are lower today with shares in London off the most. The London’s FTSE 100 is off 2.01% while France’s CAC 40 is down 0.57% and Germany’s DAX is lower by 0.30%.
- Brent crude oil price was last trading at $86.27 per barrel. It rose 1.8% yesterday to as much as $86.74, highest since end-October 2014 and on course for their sixth weekly advance in the last seven. Worries over supply disruptions prompted by Washington’s impending sanctions on Iran have prompted Brent crude prices to rise almost 10% over the last one month.
- Yield on the benchmark 10-year U.S. Treasury jumped more than 10 basis points yesterday and the dollar index advanced for the sixth straight session following better-than-expected U.S. services and private employment data. The 10-year U.S. Treasury yield was last trading at 3.22%, its highest since July 2011 and the dollar index was at six-week high of 96.02.