Financial Market Overview
30th November, 2018
MARKETS AT OPEN:-
- The Indian Rupee opened higher against the dollar ahead of a high-stakes meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the sidelines of the G-20 Summit in Argentina.
- The rupee opened at 69.67 versus its previous close of 69.84. The dollar’s struggles will likely continue on account of the recalibration of expectations surrounding the extent of monetary tightening the Federal Reserve can afford next year. The Fed minutes released yesterday reaffirmed Powell’s dovish comments earlier in the week, and the decline in the 10-year Treasury yield to near 3% suggests the dollar will likely struggle into the year-end.
- We expect USD/INR to trade in a range between 69.55 – 69.95 today.
- Equity benchmarks have made a good start in the opening trade, with the Nifty just going to hit 10,900.
- The Sensex is up 137 points or 0.30% at 36304, while the Nifty is higher by 38 points or 0.34% at 10897.00.
- Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.91% while the Hang Seng is up 0.22%. The Shanghai Composite is trading up by 0.13%. The Australian ASX 200 is up by 37 points or 0.66%.
- European markets finished mixed as of their recent closing prices. The FTSE 100 gained 0.49% while the CAC 40 was higher by 0.46%. The DAX was even.
- Wall Street closed slightly lower on Thursday as tech and financial shares slumped, erasing earlier gains stemming from U.S. Federal Reserve minutes showing the central bank opened the debate on when to pause further interest rate hikes.
- The Dow Jones Industrial Average fell 27.59 points, or 0.11 percent, to 25,338.84, the S&P 500 lost 5.99 points, or 0.22 percent, to 2,737.8 and the Nasdaq Composite dropped 18.51 points, or 0.25 percent, to 7,273.08.
- The dollar was mostly unchanged versus its major peers and against regional currencies on Friday ahead of the two-day G-20 summit, which gets underway later today. Investors’ primary focus will be on the dinner between Trump and Jinping, scheduled for tomorrow. The meeting comes in the backdrop of trade tensions between the two world’s largest economies, resulting in both nations slapping tariffs on imports worth billions of dollars from each other.
- Minutes of the last Fed meeting revealed that the U.S. central remained on course for a rate hike at the December meeting, but the views expressed by policymakers suggested more uncertainty over the likely path next year. A few participants, while viewing further gradual increases in the funds rate as appropriate, expressed uncertainty about the timing of such increases, and a couple of officials said that rates might currently be near its neutral level and that further increases could impede economic activity.
- Brent crude oil contract 0.3% higher at $59.70 per barrel, adding to yesterday’s 1.3% advance.