Financial Market Overview
01st October, 2018
- The Indian rupee is opened lower against the dollar after crude oil prices climbed to fresh four-year highs on looming supply concerns. The rupee opened at 72.60 versus the dollar compared with its previous close of 72.48.
- The Monetary Policy Committee’s decision on interest rates due this Friday will be a pivotal point for the rupee.
- We expect the pair to trade in the range between 72.80 to 72.50.
- It’s a weak start to the month on the market on Monday morning, with the Nifty below 11,000, while the Sensex is down almost 100 points.
- Among sectors, banks are in the red, along with automobiles and metals. The Nifty Midcap is down over a percent.
- The Sensex is down 88.38 points or 0.24% at 36138.76, while the Nifty is lower by 51.80 points or 0.47% at 10878.70. Bandhan Bank plunges 20% Shares of Bandhan Bank fell 20 percent in the morning trade as investors reacted to regulatory developments that were announced last week.
- Asia markets are trading mixed this Monday morning led by data released on Sunday showing a slowdown in China’s manufacturing sector. The Nikkei 225 was 0.39 percent higher while the Topix declined by 0.13 percent in the early hours. In South Korea, the Kospi was higher by around 0.1 percent in the morning.The Australian’s ASX200 is lower by -36 points and -0.56%.
- European markets finished broadly lower on Friday with shares in Germany leading the region. The DAX is down 1.52% while France’s CAC 40 is off 0.85% and London’s FTSE 100 is lower by 0.47%.
- Wall Street ended flat on Friday as gains led by Intel real estate companies and utilities were offset by Facebook after the social network disclosed a security breach.
- Based on the latest available data, the Dow Jones Industrial Average rose 18.31 points, or 0.07 percent, to 26,458.24, the S&P 500 lost 0.06 points, or -0.00 percent, to 2,913.94 and the Nasdaq Composite added 4.39 points, or 0.05 percent, to 8,046.35.
- The dollar index recorded its best weekly performance since early-August last week. The offshore yuan dropped 0.2% to 6.8825 against dollar after two gauges revealed that manufacturing activity in China slowed down last month.
- U.S. consumer spending increased steadily in August, supporting expectations of solid economic growth in the third quarter, while a measure of underlying inflation remained at the Federal Reserve’s 2 percent target for a fourth straight month.
- Growth in China’s services industry picked up for the second month in September, an official survey showed, offering some cushion for the slowing economy as trade tensions with the United States escalate.
- The official non-manufacturing Purchasing Managers’ Index (PMI) released on Sunday rose to 54.9 from 54.2 in August, well above the 50-point mark that separates growth from contraction.