Financial Market Overview
24th October, 2018
- The Indian rupee came off the day’s high against the dollar in afternoon trade, as oil and other importers stepped up greenback purchases that trimmed gains from an overnight slump in crude oil prices.
- The rupee changed hands at 73.24 to a dollar, against 73.5650 at close yesterday. It opened at 73.23 and rose to the day’s high of 73.14, highest since Oct. 3, before declining to an intra-day low of 73.3325.
- Indian shares rose on Wednesday, snapping four straight sessions of fall, with the trading sentiment supported by a firmer rupee as oil prices plunged.
- The broader NSE index rose as much as 1.4% in early trade, before giving up some gains to trade 0.46% higher at 10,193.35. The benchmark BSE index was trading at 0.37% higher at 33,972.70.
- Sentiment in Indian markets has been sour in recent weeks after a string of defaults at a major non-banking financial company sparked concerns of a liquidity crunch.
- Asian shares are mixed today. The Hang Seng falls 0.41% while Shanghai Composite is up 0.33%.
- European markets are higher today with shares in France leading the region. The CAC 40 is up 0.85% while London’s FTSE 100 is up 0.51% and Germany’s DAX is up 0.36%.
- The dollar index was steady after ending less than 0.1% lower yesterday as drop in U.S. shares reduced appeal for the greenback as the safe-haven currency.
- Focus now remains on the U.S. GDP data due on Oct. 26 along with European Central Bank’s monetary policy decision tomorrow. The euro remained under pressure extending yesterday’s fall of 0.4% against the greenback, after the European Commission rejected Italy’s draft 2019 budget and has asked to submit a new proposal in three weeks or face disciplinary action.
- The Brent crude oil contract dropped 4% overnight, logging its biggest single-session fall in three months, after Saudi Arabia’s Energy Minister Khalid Al-Falih reportedly said the world’s largest oil producer would make up for any shortfall in supply that ensues on account of the U.S. sanctions on Iran. U.S. benchmark crude also declined over 4% yesterday. Benchmark Brent crude prices fell as much as to $75.88 per barrel yesterday, lowest since Sep. 7, and was last at $76.38.