Financial Market Overview
30th January, 2019
- The Indian rupee came off the day’s low against the dollar in afternoon trade, as foreign banks sold the greenback, likely on behalf of custodian clients, amid broad weakness in the U.S. currency ahead of outcome of the Federal Reserve’s policy meet.
- The rupee changed hands at 71.22 to a dollar, against 71.11 at previous close. The currency opened at 71.36, tracking jump in crude oil prices.
- Indian shares gained in afternoon trade, ahead of China-U.S. trade talks, as upbeat quarterly results by ICICI Bank Ltd and Axis Bank Ltd helped lift optimism. Investors are hopeful the Sino-U.S. trade talks later in the day will help de-escalate a trade war that has hurt Asian exporters.
- The broader NSE index was up 0.1% at 10,663.35, while the benchmark BSE index was up 0.24% to 35,679.41.
- Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.22%, while the Shanghai Composite and Nikkei 225 fell 0.72% and 0.52% respectively.
- European markets are also mixed today. The CAC 40 is up 0.37%, London’s FTSE 100 is up 0.56% and Germany’s DAX is down 0.07% while Spain’s IBEX35 is up 0.13%.
- The benchmark Brent crude oil price climbed 2.3% yesterday, recovering most of Monday’s losses, in the wake of U.S. sanctions on Venezuelan oil company PDVSA, which, analysts said, will disrupt supply from one of the world’s largest heavy crude oil producers. It was last trading 0.21% lower at $61.19 per barrel.
- The dollar index was down 0.1%, erasing overnight gains of 0.1%, ahead of the Fed’s policy outcome. Fed officials have repeatedly said in prior weeks that low inflation allowed the monetary authority flexibility and it can afford to be patient on interest rates.
- Investors remained hopeful of positive trade talks between the U.S. and China. Officials of the world’s biggest two economies will meet today and tomorrow for high-level talks in Washington. Investors were also relieved after iPhone maker Apple Inc. reported a sharp growth in its services business, while Chief Executive Officer Tim Cook said U.S.-China trade tensions are set to ease this month.