Financial Market Overview
12th November, 2018
MARKETS AT OPEN:-
- The Indian rupee opened marginally lower against the dollar after the dollar index edged higher and wholesale prices in the world’s largest economy climbed at the quickest pace in six years. The rupee opened at 72.72 to a dollar versus its previous close of 72.49, Expectations of further normalization of the U.S. monetary policy and safe-haven demand will likely keep the dollar well bid into the year-end, and emerging market currencies will remain under pressures. If crude oil prices maintain their current decline.
- We expect USD/INR to trade in a range between 72.60 – 72.95 today.
- Equity benchmarks are trading in the green the NSE index opened 0.24% higher at 10,610, while the benchmark BSE index opened 0.37% higher at 35,268
- Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.68% while the Hang Seng is up 0.48%. The Nikkei 225 is also trading higher today it gain 0.15 %. The Australian ASX 200 is up by 9 points or 0.16 %.
- Wall Street’s three major indexes closed down on Friday after weak Chinese data and volatile oil prices raised concerns about global growth.
- The Dow Jones Industrial Average fell 201.59 points, or 0.77 percent, to 25,989.63, the S&P 500 lost 25.7 points, or 0.92 percent, to 2,781.13 and the Nasdaq Composite dropped 123.98 points, or 1.65 percent, to 7,406.90.
- The dollar index edged higher on Monday to near its highest since June last year, adding to its advance at the end of last week after the U.S. Producer Price Index (PPI) jumped by 0.6% on-month in October, quicker than the 0.2% increase expected. The core PPI rose by 2.9% on-year last month, up from 2.6% in the prior month.
- The jump in producer prices comes ahead of the more closely watched U.S. retail inflation data, due on Wednesday. The major worry for the rupee and other EM currencies would be that inflation pressures and robust labor conditions may prompt the Federal Reserve to increase the pace of rate increases.
- Brent crude declined for the fourth straight day on Friday to near $70 a barrel and the benchmark U.S. oil slipped to around $60 a barrel. Brent has fallen by about 10% in the last two weeks and it is now down more than $16 from the highs witnessed in early October.
- U.S. producer prices rose more than expected in October and at their fastest pace in six years but measures of underlying price pressure cooled, bolstering the view that the U.S. central bank is not facing a resurgence in inflation. Prices paid by producers rose 0.6 percent in October, the biggest gain since September 2012, with much of the increase fueled by a jump in costs for energy and trade services, according to figures published by the U.S. Labor Department.