Financial Market Overview
7th January, 2019
- The Indian rupee came off the day’s high, briefly turning lower against the dollar in afternoon trade, as concerns over meeting fiscal deficit target at home and greenback demand from importers outweighed early gains from dovish remarks from the Federal Reserve Chairman Jerome Powell.
- The rupee changed hands at 69.65 to a dollar, against 69.72 at the previous close. It opened higher at 69.42 and extended gains to 69.2450, highest since Aug. 10, before turning lower at 69.7750.
- Indian shares traded higher on Monday, reflecting relief witnessed in broader markets, after jitters about a global economic slowdown were pacified by strong U.S. jobs data and a dovish tone by the Federal Reserve.
- While the broader NSE index was up 0.80% at 10,813.50, the benchmark BSE index was trading 0.82% higher at 35,989.33.
- Asian markets finished broadly higher on Friday with shares in Japan leading the region. The Nikkei 225 is up 2.44% while Hong Kong’s Hang Seng is up 0.80% and China’s Shanghai Composite is up 0.72%.
- European markets are also higher today. The FTSE 100 gained 0.22%, the CAC 40 was up 0.44% while DAX gained 0.43% and IBEX35 was up 0.31%.
- The benchmark Brent crude oil price contract traded 1.88% higher at $58.13 per barrel, after rising to a near-three-week high in the previous session, amid expectations that trade jitters would ease ahead trade talks between the U.S. and China this week to be held in Beijing.
- The dollar index slipped 0.2% to trade at 95.90, heading for a third straight session of decline on dimming hopes of rate hikes by the U.S. central bank despite a robust jobs report.
- Meanwhile, yield on the 10-year U.S. Treasury yield gained on better-than-expected U.S. employment report for December. The yield was at higher at 2.6640%, after rising 11 basis points in the previous session to 2.659%.