Financial Market Overview
2nd November, 2018
- The Indian rupee remained higher against the dollar in afternoon trade and was heading for its biggest weekly rise in four months, helped by a sharp decline in crude oil prices and improved risk sentiment.
- The rupee changed hands at 72.70 to a dollar, against 73.45 at close yesterday. It opened at 73.10 and extended gains to 72.63, highest since Oct.1.
- Indian shares climbed on Friday in line with broader Asia and were set for their best week since May 2016, as crude prices fell and the rupee extended gains to touch a one-month high.
- The broader NSE index rose 1.75% to 10,562.50. The benchmark BSE index was 1.69% higher at 35,015.05.
- Asian shares rose on hopes of a thaw in trade tensions between the United States and China. The Hang Seng gains 4.16% while the Shanghai Composite rose 2.70%.
- European markets are also higher today. The London’s FTSE 100 is 1.06% higher, France’s CAC is 1.48% up, Germany’s DAX is 1.48% higher and Spain’s IBEX is 1.27% up.
- The Benchmark Brent crude oil contract stayed below $73-per-barrel mark amid signs of higher supply as the OPEC members increased output last month to the highest since December 2016. The contract was trading 0.07% down at $72.84 per barrel, down by 6.1% this week.
- The dollar index was trading lower by 0.2% today after dropping 0.9% overnight following Trump’s comments that he had a very good conversation on trade with Chinese President Xi Jinping, which reduced the safe-haven appeal of the U.S. currency.
- Meanwhile, the Chinese yuan rose 0.5% and was at 6.8921, aided by President Xi’s pledge of more support for private firms in form of tax reduction and financial aid.
- Euro gained 0.2% while pound sterling rose 0.1% after the Bank of England maintained status quo on interest rates yesterday, while hinting at possibility of a faster pace of hikes in future if Brexit goes through smoothly.