Financial Market Overview
9th January, 2019
- The Indian rupee came off lows against the dollar in afternoon trade, as greenback sales by state-run banks trimmed some losses from foreign banks’ dollar demand and higher crude oil prices.
- The rupee changed hands at 70.43 to a dollar, against 70.20 at yesterday’s close. It opened higher at 70.05 and fell to the day’s low of 70.4950, lowest since Jan. 3. However, it trimmed some losses on dollar sales by at least one state-run bank along with a private lender at around lower levels, likely on behalf of the Reserve Bank of India.
- Indian shares traded higher on Wednesday tracking gains in broader Asia, as risk appetite improved on hopes of a positive outcome of the U.S.-China trade talks, while domestic investors remained optimistic about a strong results season starting this week.
- The benchmark BSE Sensex is up 0.57% at 36,185.73, and the broader NSE Nifty is up 0.46% at 10,851.60.
- Asian markets finished broadly higher with shares in Hong Kong leading the region. The Hang Seng is up 2.10% while Japan’s Nikkei 225 is up 1.10% and China’s Shanghai Composite is up 0.71%.
- European markets are also higher today. The CAC 40 is up 0.80% while Germany’s DAX is up 0.75% and London’s FTSE 100 is up 0.79%.
- Crude oil prices rose today, with the benchmark Brent crude oil contract heading to gain for the eighth consecutive session, amid supply cuts and on hopes of positive developments on trade front between U.S.-China. The benchmark Brent crude oil contract rose 0.99% at $59.30 per barrel.
- The dollar index was last trading 0.1% lower at 95.77, after rising 0.2% yesterday, tracking weakness in the euro.
- Investors now await U.S. Federal Reserve’s policy meeting minutes, due later today. Expectation of U.S. central bank not increasing rates in the near term got a boost after last week’s dovish comments from Chairman Jerome Powell.
- Going ahead, investors will also focus on the British parliament’s vote on Prime Minister Theresa May’s Brexit agreement due on Jan. 15.