Financial Market Overview
22nd January, 2019
- The Indian rupee slipped for a third straight session against the dollar, as muted investors’ appetite for risk assets increased demand for the greenback, outweighing impact of lower crude oil prices.
- The rupee settled at 71.44 to a dollar, its lowest since Dec. 17, from 71.28 at previous close. It opened at 71.22 and extended gains to 71.17 before dropping to the day’s low of 71.47, on corporate demand for dollars. Other Asian currencies also ended lower against the greenback.
- The IMF, which forecast a higher growth rate for India in the next fiscal year, said global economy is likely to grow by 3.5% in the current year and 3.6% in 2020, down from last October’s projections of 3.7% growth for both 2019 and 2020.
- Equities ended the day on a negative note, but off their low points as bulls put up a fight in the last hour.
- The Nifty managed to hold 10,900, while the Sensex closed a little over 100 points lower. Some global cues too had their impact on the markets here. Concerns over global slowdown pushed global markets lower.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 0.53% while France’s CAC 40 is off 0.46% and Germany’s DAX is lower by 0.31%.
- A solid U.K. jobs report released Tuesday strengthened the case a gradual tightening of monetary policy by the Bank of England, as both employment and earnings growth came in a little above expectations. The unemployment rate fell to 4.0% in November, beating expectations for it to hold steady at 4.1%. The number of people in employment in the U.K. rose 141,000 in the three months to November, hitting a record high of 32.54 million.
- British workers’ pay growth hit a new 10-year high and employment grew by much more than expected in the three months to the end of November, as the labor market remained robust despite other signs of an economic slowdown ahead of Brexit. Average weekly earnings, including bonuses, rose by 3.4 percent on the year, the biggest rise since mid-2008 and compared with a median forecast of 3.3 percent. Excluding bonuses, earnings rose by an annual 3.3 percent in the three months to November. Adjusted for inflation, total pay rose at the fastest pace for two years.
- German economic sentiment improved unexpectedly in January, but an index of current conditions tumbled to a four-year low, underlining concerns over the health of the euro zone’s largest economy. The index of German economic sentiment rose to -15.0 points this month from a reading of -17.5 in December. However, the Current Conditions Index dropped to 27.6 from 45.3.