Financial Market Overview
13th December, 2018
MARKETS AT OPEN:-
- The Indian rupee opened higher against the dollar after retail prices in the South Asian nation rose less-than-expected and industrial production grew by the most in about a year.
- The rupee opened at 71.71 versus its previous close of 72.01, The economic data out of India continues to surprise positively, making a case for the rupee to strengthen into the year-end. However, the data “will play second fiddle” to the political outlook, considering that federal elections are likely in less than six months. Heading into next year, the shape of the U.S. yield curve and the Federal Reserve interest rate outlook, along with the political news flow, will matter much more for the rupee.
- India’s retail inflation rate eased to 2.3% in November from a year earlier, the slowest pace of expansion since June of last year, data released after market hours showed yesterday.
- We expect USD/INR to trade in a range between 71.55 – 72.05 today.
- Benchmark indices are trading higher in the opening trade .
- The Sensex is up by 216.18 points or 0.60% at 35995.25, while the Nifty is up 57.35 points or 053% at 10794.95.95.
- Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.99% while the Hang Seng is up 1.30%. The Shanghai Composite is trading at 1.43% up. Australian ASX 200 is up by 24 points or 0.44%.
- European markets closed sharply higher today with shares in France leading the region. The CAC 40 is up 2.15% while Germany’s DAX is up 1.38% and London’s FTSE 100 is up 1.08%.
- U.S. stocks closed up but well below their session highs on Wednesday as investors pulled back in the last few minutes of trading despite optimism about U.S.-China trade relations and some reassuring signs in British politics. The Dow Jones Industrial Average rose 157.03 points, or 0.64 percent, to 24,527.27, the S&P 500 gained 14.29 points, or 0.54 percent, to 2,651.07 and the Nasdaq Composite added 66.48 points, or 0.95 percent, to 7,098.31.
- U.S. data released yesterday, consumer prices in the world’s largest economy were unchanged in November, the weakest reading in eight months, reinforcing recent expectations that the Fed may not increase interest rates next year.
- U.S. consumer prices were unchanged in November, held back by a sharp decline in the price of gasoline, but underlying inflation pressures remained firm amid rising rents and healthcare costs.
- The strength in underlying inflation reported by the Labor Department on Wednesday supports views that the Federal Reserve will raise interest rates at its Dec. 18-19 policy meeting. The U.S. central bank has hiked rates three times this year.
- U.S. consumer price growth slowed in November, underlining arguments for the Federal Reserve to take a pause in monetary policy tightening after the rate hike expected at its meeting next week. The Labor Department said on Wednesday its consumer price index (CPI) was unchanged from a month earlier, slowing from the 0.3% increase seen in November. Analysts had forecast a 0.1% increase.