Financial Market Overview
3rd January, 2019
- The Indian rupee came off lows against the dollar in afternoon trade, as some foreign banks sold the greenback that trimmed early losses triggered from lower risk appetite.
- The rupee changed hands at 70.27 to a dollar against 70.17 at yesterday’s close. The currency opened lower at 70.29 and had extended losses to 70.52.
- Indian shares fell, tracking global markets, hurt by declines in the financial sector, as investors remained cautious ahead of the start of corporate earnings season next week.
- The broader NSE index was down 0.71% at 10,715.45, while the benchmark BSE index was 0.63% lower at 35,664.41.
- Asian markets finished broadly lower with shares in Hong Kong leading the region. The Hang Seng is down 0.35% while China’s Shanghai Composite is off 0.04%.
- European markets are also lower today. The FTSE 100 lost 0.52%, the CAC 40 was down 0.96% while DAX lost 1.05% and IBEX35 was down 0.37%.
- The dollar index rose 0.7% overnight on safe-haven bids. However the index fell 0.4% as a partial U.S. shutdown continued as no deal was reached between Democrats and Republicans yesterday. The congress will resume talks tomorrow.
- S. Treasury yields declined to 11-month low amid expectation of no rate hike by the Federal Reserve this year as against Fed’s two rate increases in 2019 and a partial U.S. shutdown.
- Crude oil price rose overnight on a reported drop in December crude exports from Saudi Arabia, as output cuts by the Organization of the Petroleum Exporting Countries and its allies kicked in. However, oversupply worries still persist after record output from U.S. in October and Russia in December. The benchmark Brent crude oil contract was last trading 1.29% down at $54.20 per barrel.