Financial Market Overview
25th October, 2018
- The Indian rupee came off the day’s low against the dollar in afternoon trade, as greenback sales by exporters helped trim some early losses triggered from global risk aversion.
- The rupee changed hands at 73.30 to a dollar, against 73.15 at close yesterday. It fell to 73.37 in early trade before rising as much as 73.2650.
- Indian shares fell on Thursday, joining a sell-off in global equities amid concerns about a slowdown in the world economy.
- The broader NSE index fell 0.81% to 10141.90 and the benchmark BSE index fell 0.79% to 33764.36, with losses seen across the board.
- Factors ranging from faster rate hikes in the United States to an ongoing Sino-U.S. trade war that threatens to hurt world growth have continued to make investors jittery.
- Asian shares are mixed today. The Hang Seng falls 1.20% while the Shanghai Composite is up 0.02%.
- European markets are mixed too. The CAC 40 is higher by 0.30% while the FTSE 100 is lower by 0.59% and DAX is lower by 0.10%.
- The benchmark Brent crude oil contract continued its decline, and was last trading 0.56% lower at $75.74 per barrel, amid concerns over demand following a sell-off in global markets. Oil prices came under pressure after Saudi Arabia, one of the major exporters of oil pledged to keep oil markets well supplied in the wake of looming U.S. sanctions on Iran, that will kick start from Nov. 4.
- Dollar Index was last trading down 0.2%. It rose to over two-month high to 96.53 overnight, following weak manufacturing data pulled the euro down.
- Pound sterling gained marginally after British Prime Minister Theresa May received support from her Conservative Party yesterday at a meeting in parliament on the Brexit strategy.
- Investors now await European Central Bank’s monetary policy decision later today and any comments about the deepening row between the European Union and Italy over Rome’s budget.