Financial Market Overview
16th November, 2018
MARKETS AT OPEN:-
- The Indian rupee opened little changed amid tepid regional cues and October trade deficit that was in line with expectations. The rupee opened at 71.95 versus its previous close of 71.98. The rupee is particularly sensitive to crude oil prices, with India importing more than three-fourths of its oil requirement. Since climbing to multiyear highs in early October, oil prices have fallen by more than 25% amid concerns over the demand outlook and U.S. waivers related to sanctions on Iran.
- Late Thursday, data showed that India’s October trade deficit stood at $17.1 billion. The deficit was wider than the $14 billion in September and $14.6 billion a year earlier.
- We expect USD/INR to trade in a range between 71.75 – 72.15 today.
- Benchmark indices are trading higher in the opening session with Nifty trading above 10,600 level.
- The Sensex is up 100 points at 35,360, while Nifty up 20 points at 10637.
- Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.52% while the Hang Seng is down 0.52%. The Shanghai Composite is up by 0.34%. The Australian ASX 200 is up by 09 points or 0.16 %.
- European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.06%, while the CAC 40 led the DAX lower. They fell 0.70% and 0.52% respectively.
- U.S. stocks rose on Thursday after a news report that further U.S. tariffs on Chinese imports would be paused spurred optimism that the two countries could resolve their trade dispute.
- A spokesperson for U.S. Trade Representative Robert Lighthizer, however, denied the report.
- The Dow Jones Industrial Average rose 208.84 points, or 0.83 percent, to 25,289.34, the S&P 500 gained 28.69 points, or 1.06 percent, to 2,730.27 and the Nasdaq Composite added 122.64 points, or 1.72 percent, to 7,259.03.
- The dollar index was almost flat on Friday, after edging higher by 0.1% in the previous session. Thursday’s advance on the dollar index was helped by the slump in the pound after ministers resigned in protest against the proposed draft Brexit agreement. The pound was little changed at 1.2780 after tumbling by over 1.5% on Thursday.
- U.S. retail sales rebounded sharply in October as purchases of motor vehicles and building materials surged, but data for the prior two months was revised lower and the underlying trend suggested that consumer spending was probably slowing down. Retail sales increased 0.8 percent last month. Retail sales in September slipped 0.1 percent instead of rising 0.1 percent and sales in August were also weaker than previously thought.
- Fitch Ratings after market close on Thursday affirmed India’s sovereign credit rating at ‘BBB-‘ and maintained the ‘Stable’ outlook for Asia’s third largest economy.