Financial Market Overview
10th December, 2018
MARKETS AT OPEN:-
- The Indian rupee opened lower against the dollar, weighed by another U.S. equity selloff amid mounting growth and trade worries. Widening of India’s current account deficit to a five-year high and exit polls that suggested a close contest between Prime Minister Narendra Modi’s Bharatiya Janata Party and the Congress will further pressure the rupee in early trades.
- The rupee opened around 71.34 versus its previous close of 70.80, In addition to the U.S. negative cues, the rupee will also have to contend with exit polls that signaled that the BJP will struggle to win a majority in Madhya Pradesh and Chhattisgarh states and a rise in crude oil prices after OPEC’s output cut. The rupee, in offshore trading on Friday, had slid to below 71.60 in the wake of the exit polls and higher oil prices.
- We expect USD/INR to trade in a range between 71.05 – 71.45 today.
- The Nifty has given up 10,600 in opening trade. The Sensex is down -506 points.
- The Sensex is down 506.00 points or 1.42% at 35166, and the Nifty down 156.60 points or 1.46% at 10537.10.
- Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 2.25% while the Hang Seng is down 1.61%. The Shanghai Composite is trading down at -0.87% down.The Australian ASX 200 is down by 113 points or -2.00%.
- European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 1.10% and the CAC 40 rose 0.68%. The DAX lost 0.21%.
- U.S. stocks tumbled on Friday in a broad sell-off led by declines in big internet and technology shares, and the benchmark S&P 500 index posted its biggest weekly percentage drop since March as concerns over U.S.-China trade tensions and interest rates convulsed Wall Street.
- The Dow Jones Industrial Average fell 559.33 points, or 2.24 percent, to 24,388.34, the S&P 500 lost 62.86 points, or 2.33 percent, to 2,633.09 and the Nasdaq Composite dropped 219.01 points, or 3.05 percent, to 6,969.25.
- Data released on Friday showed that the U.S. economy added 155,000 jobs last month, much lower than the 200,000. The data for September and October was revised to show 12,000 fewer jobs added than previously reported. Average hourly earnings increased 0.2% on-month and 3.1% on-year.
- U.S. wholesale inventories increased a bit more than initially thought in October as sales dropped, suggesting inventory investment could contribute to economic growth in the fourth quarter. The Commerce Department said on Friday wholesale inventories rose 0.8 percent instead of gaining 0.7 percent as reported last month.
- China’s factory prices rose in November at their slowest pace since October 2016 as domestic demand lost further momentum, piling pressure on policymakers to unveil more measures to support the economy.he producer price index (PPI), a measure of the prices businesses receive for their goods and services, rose 2.7 percent in November from a year earlier, compared with a 3.3 percent increase in October, according to the statistics bureau.