Financial Market Overview
21st December, 2018
MARKETS AT OPEN:-
- The Indian rupee opened lower against the dollar after Wall Street slipped to new year-to-date lows and regional risk assets extended declines. The fall in the dollar index to a one-month low amid a dovish Federal Reserve outlook and worries over a U.S. federal shutdown will likely keep the losses in check.
- The rupee opened at 69.7225 versus its previous close of 69.70. In addition to another selloff on Wall Street, the higher USD/INR NDF levels combined with rupee being quite oversold in the near-term, was primarily the reason why the domestic currency was likely to trade weaker at the opening.
- We expect USD/INR to trade in a range between 69.65 – 70.20 today.
- It’s a nagative start for the market in opening trade, with the Nifty holding 10,900-mark.
- The Sensex is down 32.49 points or 0.09% at 36399.18, and the Nifty down by 14.55 points or 0.13% at 10937.15.
- Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 1.78% while the Hang Seng is down 0.18%. The Shanghai Composite is not trading.Australian ASX 200 is down by -48 points or -0.87%.
- European markets finished broadly lower today with shares in France leading the region. The CAC 40 is down 1.78% while Germany’s DAX is off 1.44% and London’s FTSE 100 is lower by 0.80%.
- U.S. stocks slid on Thursday, with the Nasdaq close to confirming bear market territory as the Federal Reserve’s plan to continue its balance-sheet reduction and the threat of a partial government shutdown fueled investor anxieties.
- The Dow Jones Industrial Average fell 464.06 points, or 1.99 percent, to 22,859.6, the S&P 500 lost 43.89 points, or 1.75 percent, to 2,463.07 and the Nasdaq Composite dropped 108.24 points, or 1.63 percent, to 6,528.59.
- The number of Americans filing applications for jobless benefits rose marginally from near a 49-year low last week, suggesting underlying strength in the labor market and broader economy. While other data on Thursday showed factory activity in the mid-Atlantic region slowing to near a 2-1/2-year low in December, manufacturers reported hiring more workers and were upbeat about business conditions over the next six months.
- British consumers are their gloomiest in more than five years, business sentiment is its weakest since the 2016 Brexit referendum and car output has tumbled this year, according to three surveys that paint an ominous picture for 2019.
- The U.S. House of Representatives on Thursday added $5 billion to a spending bill for President Donald Trump’s wall on the southern border with Mexico, a move that boosted the odds of a partial federal shutdown on Saturday. The bill is unlikely to win the support of the Democrats in the Senate, increasing the likelihood that funding for agencies responsible for federal law enforcement activities, airport security screenings, space exploration, and farm programs will lapse at midnight on Friday.