Financial Market Overview
23rd October, 2018
MARKETS AT OPEN:-
- The Indian rupee opened lower against the U.S. currency, in-line with its Asian peers, after the dollar index climbed to near its highest level since mid-August. The rupee opened at 73.70 versus the dollar compared with its previous close of 73.56, In addition to weakness in regional currencies and local equities, yesterday’s intraday turnaround in the rupee will weigh on the local unit at the opening.
- Last month, FIIs withdrew almost USD 3billion taking the total outflow figure to USD 7.5billion in the last couple of months. On the domestic front, no major economic data is expected to be released but volatility for the rupee could be determined by any comments from the US President on the trade war front.
- We Expect Pair to trade in the range between 73.60 to 73.95
- Benchmark indices slipped in the early trade on Tuesday with Nifty falling below 10,200 mark, while Sensex is down over 200 points.
- The Sensex is down 231.71 points or 0.68% at 33902.67, and the Nifty down 72.80 points or 0.71% at 10172.50.
- Asian Paints down 4 percent, while Sun Pharma, Titan are trading marginally lower. Asian Paints slipped 10 percent on weak second quarter numbers. Kotak Mahindra Bank is trading firm, while DHFL is down 9 percent.
- Asian markets are lower today as Japanese, Chinese and Hong Kong shares fall. The Nikkei 225 is off 2.14% while the Hang Seng is down 2.28%. The Shanghai Composite is off -1.37%. And the australian ASX200 is down by -49 points and -0.84 % down.
- European markets finished lower yesterday with shares in France leading the region. The CAC 40 is down 0.62% while Germany’s DAX is off 0.26% and London’s FTSE 100 is lower by 0.10%..
- The South Korean won and Thai baht paced losses in Asian currencies on Tuesday, weighed by tepid risk appetite and a buoyant dollar.
- The S&P 500 and Dow slipped in choppy trading on Monday following losses in energy and financial stocks, and as caution grew ahead of a slew of earnings this week.
- The Dow Jones Industrial Average fell 126.86 points, or 0.5 percent, to 25,317.48, the S&P 500 lost 11.9 points, or 0.43 percent, to 2,755.88 and the Nasdaq Composite added 19.60 points, or 0.26 percent, to 7,468.63.
- The dollar index closed at its highest level since August 17 yesterday, boosted by rising political risks in U.K. and Europe. The uncertainty over Brexit negotiations and Italy’s budget hurt the euro and the British pound, sending the former to below 1.15 against the dollar and the latter to below 1.30.
- British households’ confidence in their finances worsened this month as their earnings from employment rose at the weakest rate since February, adding to growing signs of caution among consumers, a survey showed on Monday.
- The IHS Markit Household Finance Index, watched by the Bank of England as a gauge of consumers’ financial health, cooled to a three-month low of 45.1 from 45.7 in September, though the reading is still one of the highest since the survey’s 2009 launch.
- Brent crude oil contract down 0.2% at $79.66 per barrel.