Nov 26 2018

Rupee Opened Higher As Crude Falls Below $60 Per Barrel

Financial Market Overview

26th November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar as crude oil prices extended their decline to below $60 per barrel, trading at a more-than-one-year low. The rupee opened at 70.46 versus its previous close of 70.67, India being the biggest beneficiary of the fall in oil prices, the currency will also rise simultaneously.
  • The benchmark Brent crude oil prices slumped more than 6% on Nov. 23, ending at $58.80 per barrel, its lowest since late October 2017 amid concerns over increased supply and weak demand. The Brent’s seventh consecutive weekly decline comes even as major oil producers are considering a supply cut
  • We expect USD/INR to trade in a range between 70.20 – 70.60 today.

 Indian Equities:-

  • Benchmark indices are trading higher in the opening session.
  • The Sensex is up by 137 points at 35,117  or 0.40 % while Nifty is up by 54 points at 10581 or 0.44 %.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.78% while the Hang Seng is up 1.74%. The Shanghai Composite is trading up by 0.34% The Australian ASX 200 is down by -40 points or -0.71%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.49% and the CAC 40 rose 0.18%. The FTSE 100 lost 0.11%.
  • U.S. stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018.
  • The Dow Jones Industrial Average fell 178.74 points, or 0.73 percent, to 24,285.95, the S&P 500 lost 17.37 points, or 0.66 percent, to 2,632.56 and the Nasdaq Composite dropped 33.27 points, or 0.48 percent, to 6,938.98.
  • China’s economic growth is expected to hit 6.6 percent this year and slow to 6.3 percent in 2019 as the country struggles with challenges relating to trade and structural reform, economists from Beijing’s Renmin University said in a report. China’s gross domestic product (GDP) grew 6.5 percent year on year in the September quarter, its slowest quarter of growth since 2009, and Beijing has tried to encourage commercial banks to boost lending to private firms and take action to ease company financing problems.
  • Weaker exports were the primary driver behind Germany’s first quarterly economic contraction since 2015, data showed on Friday, and while economists called it an aberration, they cited clear signs that Europe’s largest economy was cooling. The GDP data, coupled with news that Germany’s private sector growth slowed more than expected, hit the euro and German bond yields in early trading.
  • The dollar index added 0.2% on Friday amid rising safe-haven bets as the drop in crude oil prices increased concerns over global economic growth.