Financial Market Overview
14th December, 2018
MARKETS AT OPEN:-
- The Indian rupee open lower against the dollar after appetite for regional currencies was marred by a pullback in equities.
- The rupee opened at 71.7850 versus its previous close of 71.68. The next leg of the move on the rupee will be based on next week’s outcome of the Federal Reserve meeting. Traders expect a rate hike, with Fed policymakers expected to scale back their forecasts for next year’s rate increases. On the home front, the November trade data, which may be released later today, will be closely watched.
- Asian equities, after having rallied in the three previous sessions, were back under pressure on Friday. The retracement came alongside a decline in U.S. equity index futures and disappointing China retail sales and factory output data. Earlier today, China said November retail sales increased 8.1% and industrial production rose 5.4%, down from 8.6% and 5.9% in the prior month and lower than the 8.8% and 5.9%..
- We expect USD/INR to trade in a range between 71.60 – 72.00 today.
- Benchmark indices are little down in the opening trade with Nifty trading below 10,800 level.
- The Sensex is down 55 points or 0.15% at 35874.62, and the Nifty down by 12.20 points or 0.11% at 10779.30.
- Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 1.73% while the Hang Seng is down 1.44%. The Shanghai Composite is trading at -0.59% down. Australian ASX 200 is down by -52 points or -0.93%.
- European markets finished lower today with shares in France leading the region. The CAC 40 is down 0.26% while Germany’s DAX is off 0.04% and London’s FTSE 100 is lower by 0.04%.
- The S&P 500 ended little changed after a volatile session on Thursday, as investors favored defensive sectors while the biggest drag came from financials and consumer discretionary stocks. The Dow Jones Industrial Average rose 70.11 points, or 0.29 percent, to 24,597.38, the S&P 500 lost 0.04 points, or -0.00 percent, to 2,651.03, and the Nasdaq Composite dropped 27.41 points, or 0.39 percent, to 7,070.90.
- New vehicle sales in the United States are expected to drop next year as higher interest rates and rising prices could prompt customers to hold off their car-buying plans, the National Automobile Dealers Association (NADA) said on Thursday. The dealer lobby estimated sales of 16.8 million units for 2019, saying this would be the first time since 2014 that U.S. new vehicle sales could fall below the 17-million mark.
- The U.S. federal government ran a $205 billion deficit in November, according to data released on Thursday by the Treasury Department. As expected a $188 billion deficit for last month.
- Bank of America Merrill Lynch said in a note that the US-China trade narrative will remain volatile over the ceasefire period and “it is unclear if the trust deficit will close.” The weakness in Chinese data, including its import impulse for the rest of Asia, means regional risk premium will remain high. The Chinese yuan, the Indonesian rupiah, and the South Korean won paced losses in Asian currencies on Friday. Meanwhile, the euro was little changed at 1.1358 against the dollar on Friday after edging lower in the previous session. On Thursday, the European Central Bank ended it bond-buying program and said that it will continue reinvesting in maturing bonds. .