Dec 18 2018

Rupee Opened Higher On Weak Crude Oil, Lower US Data

Financial Market Overview

18th December, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar, helped by weak U.S. housing and manufacturing data and crude oil’s decline to below $50 a barrel.
  • The rupee opened at 71.33 versus its previous close of 71.55. The regional currencies were trading mostly higher today despite U.S. equities posting another tumble, and for the second day, Asian equities weren’t much affected by the selling on Wall Street. This, he said, was a reflection of the increasing odds of the Federal Reserve pausing after hiking the rate tomorrow. The odds of tomorrow’s interest rate increase itself, while still high, had fallen to 2-in-3 from 3-in-4 at the end of last week.
  • We expect USD/INR to trade in a range between 71.15 – 71.55 today.

Indian Equities:-

  • It’s a lower start for the market on Tuesday morning, with benchmarks seeing cuts of around 0.50 percent.
  • The Sensex is lower by 151.23 points or 0.42% at 36118.84, while the Nifty is down 58.40 points or 0.54% at 10830.00. The market breadth was negative as 203 shares advanced, against a decline of 215 shares, while 34 shares were unchanged.
  • All sectoral indices are witnessing selling pressure, with maximum cuts seen among banks, information technology, automobiles, and consumption names. In the broader market, the Nifty Midcap index is down around one-third of a percent.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 1.23% while the Hang Seng is down 0.65%. The Shanghai Composite is trading down by -1.07%. Australian ASX 200 is down by -60 points or -1.07%.
  • European markets finished broadly lower today with shares in France leading the region. The CAC 40 is down 1.11% while London’s FTSE 100 is off 1.05% and Germany’s DAX is lower by 0.86%.
  • Wall Street’s three major indexes each slid more than 2 percent on Monday, with the benchmark S&P 500 closing at its lowest level in 14 months, on concerns about slowing economic growth ahead of a highly anticipated decision from the Federal Reserve later this week on the course of interest rate hikes.
  • The Dow Jones Industrial Average fell 507.73 points, or 2.11 percent, to 23,592.78, the S&P 500 lost 54.12 points, or 2.08 percent, to 2,545.83 and the Nasdaq Composite dropped 156.93 points, or 2.27 percent, to 6,753.73.
  • British economic growth this year and in 2019 looks set to be the weakest since the country’s last recession, due to a freeze in business investment and weak consumer demand ahead of Brexit, the British Chambers of Commerce forecast on Tuesday. The business lobby said growth in 2018 was likely to slow to 1.2 percent before inching up to 1.3 percent in 2019, which would be the two weakest years since Britain emerged from recession in 2009 after the global financial crisis.
  • Euro zone consumer price inflation for November was unexpectedly revised lower on Monday, adding to skepticism that the European Central Bank will be able to move ahead with an interest rate hike in 2019. The bloc’s statistics agency Eurostat said that CPI rose 1.9% in November from the same month a year earlier. Consensus had expected no change from the initial estimate of 2.0%. Core inflation, which excludes energy, food, alcohol and tobacco prices, rose by an annual rate of 1.0%, unchanged from the preliminary estimate and in line with forecasts.
  • crude oil prices slipped further on Tuesday to head for a third day of losses. Poor risk appetite and worries over increasing U.S. shale supply triggered a 2.5% fall in the U.S. benchmark oil yesterday.