Financial Market Overview
21st January, 2019
- The Indian rupee trimmed most of its early losses to trade little changed against the dollar in thin afternoon trade, on reports that a farm loan waiver scheme will have limited impact on the nation’s fiscal deficit gap.
- The rupee changed hands at 71.25 to a dollar, against 71.18 at previous close. The currency opened at 71.36 and extended decline to 71.52, before rising to day’s high of 71.19.
- Indian shares rose on Monday with market heavyweight Reliance Industries Ltd extending gains to a second day, while a weaker rupee supported IT stocks.
- The broader NSE index was up 0.57% to 10,969.05, while the benchmark BSE index was up 0.69% to 36,638.33.
- Asian markets finished higher with shares in China leading the region. The Shanghai Composite is up 0.56% while Hong Kong’s Hang Seng is up 0.28% and Japan’s Nikkei 225 is up 0.26%.
- European markets are also lower today. The CAC 40 is down 0.29% while London’s FTSE 100 is down 0.16% and Germany’s DAX is down 0.39%.
- The benchmark Brent crude oil contract was last trading down 0.18% at $62.59 per barrel, after briefly touching six-week high of $63.10 per barrel earlier today tracking a rebound in global risk appetite.
- Higher risk appetite and a jump in Treasury bond yields on Jan. 18 lifted the dollar index, which was last trading steady after rising to a two-week high of 96.39 in the previous session. The 10-year Treasury yields ended at 2.7820%, its highest close since Dec. 26. The index was last trading down 0.1% at 96.24.
- Investors now await more details on the Brexit deal. After Prime Minister Theresa May’s deal was rejected by lawmakers last week, May will return to parliament today to set out how she plans to try to break the Brexit deadlock.