Financial Market Overview
6th December, 2018
- The Indian rupee came off a two-week low against the dollar in afternoon trade, as banks stepped up greenback sales likely for exporters, trimming some losses triggered from risk aversion and on caution ahead of a crucial meet between major oil producers.
- The rupee changed hands at 70.93 to a dollar against 70.46 at close yesterday. It opened at 70.79 and extended fall to 71.14, lowest since Nov. 22.
- Indian shares were trading lower, in line with most other Asian equities, which declined amid a fall in the U.S. equity futures that slipped by about a percent.
- The broader NSE index was trading 0.89% lower at 10,687.10 while the benchmark BSE index was 0.75% lower at 35,616.90.
- Asian markets finished sharply lower on Wednesday with shares in Hong Kong leading the region. The Hang Seng is down 2.47% while Japan’s Nikkei 225 is off 1.91% and China’s Shanghai Composite is lower by 1.68%.
- European markets are also lower today. The DAX was down 1.27% while the FTSE 100 lost 0.85%. The CAC 40 was down 1.04% and IBEX35 lost 1.04%.
- Investors’ risk appetite further weakened following arrest of the CFO of Chinese telecom behemoth Huawei Technologies by Canadian authorities. The arrest is related to violations of U.S. sanctions, citing a person familiar with the matter.
- The benchmark Brent crude oil contract was 0.39% lower at $61.32 per barrel in choppy trade, amid decline global shares. Investors focus on the much-awaited two-day meeting between the Organization of Petroleum Exporting Countries and its allies starting today in Vienna, where these oil producers are expected to take a decision on supply cut.
- The dollar index was last trading 0.1% higher after gaining 0.1% in overnight trade. The Federal Reserve’s monetary policy review on Dec. 18 and Dec. 19 is also awaited, where the authority is widely expected to hike rates, while traders’ key focus will be on the pace of rate increases next year.