Financial Market Overview
25th September, 2018
MARKETS AT OPEN:-
- Indian rupee open lower against the dollar at 72.89 after crude oil prices climbed by the most in three months to their highest since late 2014. Pair USDINR now at 72.88 against the previous close of 72.63
- We expect the pair to trade in the range between 72.70 to 73.20.
- It is a negative start to the market on Tuesday, with the Nifty beginning 14 points lower around 10,950-mark. The Sensex is trading flat.
- The Sensex is down 6.16 points or 0.02% at 36298.86, and the Nifty down 14.00 points or 0.13% at 10953.40. The market breadth is narrow as 300 shares advanced, against a decline of 227 shares, while 49 shares are unchanged.
- Asian equities are trading lower today with shares in China off the most. The Shanghai Composite is down 0.76%, the Australian’s ASX200 is off 0.05%. Stock market in Hong Kong is closed on account of the day following the Chinese Mid- Autumn Festival.
- European markets finished lower on Monday with shares in Germany leading the region. The DAX was down 0.64% while London’s FTSE 100 fells 0.42% and France’s CAC 40 closed lower by 0.33%..
- The S&P 500 and the Dow closed lower on Monday after a new round of U.S.-China trade tariffs kicked in. The Dow Jones Industrial Average fell 181.45 points, or 0.68 percent, to 26,562.05, the S&P 500 lost 10.3 points, or 0.35 percent, to 2,919.37, and the Nasdaq Composite added 6.29 points, or 0.08 percent, to 7,993.25.
- Brent crude rose 3% on Monday, its biggest jump since mid- June, to surge past $80 a barrel after major oil producers, over the weekend, refused to increase production in spite U.S. President Donald Trump’s call for containing oil prices, which are up more than 20% year-to-date. Analysts estimate a $10 barrel increase in the price of India’s oil basket adds 0.4% to the nation’s current account deficit and hurts its GDP by up to 0.3%. Indian assets are particularly sensitive to oil prices as the country imports more than three-fourth of its oil requirements.
- Regional equities continued to struggle amid simmering U.S.- China trade tensions and before the two-day Fed meeting, which gets underway later today. With effect from yesterday, Washington will collect tariffs on $200 billion of imports from China and Beijing on $60 billion of U.S. shipments. This is in addition to the $50 billion already imposed previously by both the nations.