Financial Market Overview
17th December, 2018
MARKETS AT OPEN:-
- The Indian rupee opened little higher as the impact from the dollar index’s rise to its highest in one-and-half years would be offset by the decline in Brent crude prices.
- The rupee opened at 71.79 to a dollar versus its previous close of 71.90. Regional equities’ reaction to the Wall Street’s selloff on Friday is “surprisingly quite muted,” a factor which will help prevent the rupee from slipping below 72 to the dollar. The one-month NDF had cooled off to 72.15 after reaching 72.50 on Friday amid a plunge in U.S. equities. India’s November trade is “unlikely to move the needle much” and the focus this week will be primarily on the Federal Reserve decision.
- We expect USD/INR to trade in a range between 71.70 – 72.10 today.
- It’s a strong start to the market on Monday morning, with the Nifty hitting 10,850-mark. The Sensex is up around half a percent. The Sensex is up 179.58 points or 0.50% at 36142.51, while the Nifty is higher by 46.30 points or 0.43% at 10851.80. The market breadth is positive as 317 shares advanced, against a decline of 110 shares, whereas 48 shares were unchanged.
- All sectoral indices are trading in the green, with metals, energy and pharmaceutical indices leading the top gainers’ chart. The Nifty Midcap index is up around one-third of a percent.
- Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.76% while the Hang Seng is up 0.14%. The Shanghai Composite is trading down at -0.04%. Australian ASX 200 is up by 50 points or 0.86%.
- European markets finished lower on Friday with shares in France leading the region. The CAC 40 is down 0.88% while Germany’s DAX is off 0.54% and London’s FTSE 100 is lower by 0.47%.
- Wall Street’s three major indexes slumped on Friday as weak data from China and Europe stoked fears of a global economic slowdown, while Johnson & Johnson was a major drag on the S&P 500 and Dow after Reuters reported the company had known knew for decades that asbestos lurked in its Baby Powder.
- The Dow Jones Industrial Average fell 496.87 points, or 2.02 percent, to 24,100.51, the S&P 500 lost 50.59 points, or 1.91 percent, to 2,599.95 and the Nasdaq Composite dropped 159.67 points, or 2.26 percent, to 6,910.67.
- U.S. consumer spending gathered momentum in November as households bought furniture, electronics and a range of other goods, which could further allay fears of a significant slowdown in the American economy even as the outlook overseas continued to darken. The upbeat data from the Commerce Department on Friday bolstered expectations that the Federal Reserve will raise interest rates for a fourth time this year at its Dec. 18-19 policy meeting, despite moderating inflation and tighter financial market conditions
- France’s budget deficit is likely to overshoot the European Union’s limit of 3 percent of GDP next year and stand at around 3.2 percent, Prime Minister Edouard Philippe told Les Echos newspaper in an interview. France is expected to breach the deficit ceiling after President Emmanuel Macron made concessions to anti-government protesters earlier this month, blowing a 10 billion euro ($11.30 billion) hole in the budget.
- Brent crude oil contract 0.2% lower at $60.16 per barrel, extending previous session’s 2% decline.
Dollar index little changed at 97.44 after rising by 0.4% on Friday.