Financial Market Overview
15th January, 2019
MARKETS AT OPEN:-
- The Indian rupee opened higher against the dollar after consumer inflation in Asia’s third-largest economy eased to an 18-month low. The dollar’s decline against major currencies and regional peers is also expected to aid the local currency.
- The Rupee opened at 70.7750 versus its previous close of 70.93. India’s consumer inflation data “makes a good case” to be long on the rupee in the medium term, more so considering the recent fall in crude oil prices,. The rally in the Chinese Yuan to above 6.75 to the dollar is another positive for the rupee the two currencies are quite correlated in the long term.
- Monday, data released revealed that retail prices in India rose 2.19% last month, down from 2.33% in November and marginally below the 2.20%. It was the fifth straight month that retail inflation had remained below the Reserve Bank of India’s 4% medium-term target.
- We expect USD/INR to trade in a range between 70.60- 71.10 today.
- Equity benchmarks have witnessed a positive start with the Sensex rising over 129.57 points, while the Nifty opened at 44.35 points positive but trading down 10,800.00 level.
- The Sensex trading up by 129.57 points or 0.36% at 35983.13 while the Nifty trading up by 0.41% at 10781.95 or 44.35 point up.
- 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 1.92%. The Shanghai Composite is trading up by 0.63% up. Where Australian ASX 200 is up by 30 points and 0.52.%.
- European markets finished lower today with shares in London leading the region. The FTSE 100 is down 0.91% while France’s CAC 40 is off 0.39% and Germany’s DAX is lower by 0.29%.
- U.S. stocks declined on Monday as an unexpected drop in China’s exports reignited worries of a global economic slowdown and prompted caution among investors as the corporate earnings season kicked off.
- The Dow Jones Industrial Average fell 87.4 points, or 0.36 percent, to 23,908.55, the S&P 500 lost 13.88 points, or 0.53 percent, to 2,582.38 and the Nasdaq Composite dropped 65.56 points, or 0.94 percent, to 6,905.92.
- Euro zone industrial output posted in November its biggest fall in nearly three years, data showed on Monday, stoking concerns about the currency bloc’s economic growth in the final quarter of 2018 and casting doubt over the timing of the next rate hike. The European Union’s statistics office Eurostat estimated that industrial production in the 19-nation euro zone tumbled by 1.7 percent in November month-on-month, its worst reading since February 2016, after a modest, downwardly revised 0.1 percent rise in October.
- China’s exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand. Adding to policymakers’ worries, data on Monday also showed China posted its biggest trade surplus with the United States on record in 2018, which could prompt President Donald Trump to turn up the heat on Beijing in their bitter trade dispute.
- Meanwhile, the dollar index edged lower in Asia trading on Tuesday. The Yuan paced the advance in regional currencies, climbing 0.3% to 6.7460. The South Korean won, the Thai baht, and the Indonesian rupiah were up by the same margin.