Financial Market Overview
20th November, 2018
- The Indian rupee came off the day’s high against the dollar in afternoon trade, as importers’ greenback demand trimmed some gains from upbeat sentiments after the government and the central bank were seen making truce at yesterday’s board meeting.
- The rupee changed hands at 71.39 to a dollar, against 71.64 at close yesterday. It opened at 71.45 and extended gains to 71.29, its highest since Sep. 4.
- Indian shares fell on Tuesday in line with weakness in broader Asia and after the outcome of the central bank board’s meet to boost lending failed to impress investors, amid expectations the implementation of the proposed measures will take time.
- The broader NSE Nifty fell 0.57% to 10,701.55, while the benchmark BSE Sensex slipped 0.45% to 35,613.45.
- Most Asian shares fell amid a further sell-off in U.S. equities. The Hang Seng lost 1.96% and the Shanghai Composite was down 2.13%.
- European shares are also trading lower today. The London’s FTSE 100 lost 0.41%, France’s CAC lost 0.64% while Germany’s DAX was 0.77% lower and Spain’s IBEX35 was 0.48% lower.
- The benchmark Brent crude oil price fell 0.88% at $66.20 per barrel, heading for its first decline in five sessions on supply concerns. The Organization of the Petroleum Exporting Countries will meet on Dec. 6 to discuss supply cuts.
- The dollar index was trading little changed at 96.17, after dropping to a two-week low yesterday amid doubts over how much the Federal Reserve would raise interest rates further. The questions related to the pace of rate increases came amid recent comments by Fed Vice Chairman Richard Clarida that short term interest rates in the world’s largest economy were close to neutral.
- The long-term U.S. Treasury yields slipped to a seven-week low of 3.052% in the wake of weaker stocks and U.S. housing data.
- The euro was little changed at $1.1463 after gaining 0.35% overnight. The dollar slipped to a three-week low of 112.40 yen and last traded at 112.45.