Financial Market Overview
27th February, 2019
- The Indian rupee extended losses to over one-week low against the dollar in afternoon trade, dragged down by fresh border tensions between India and Pakistan. However, likely intervention by the central bank recouped some losses.
- The rupee changed hands at 71.30 to a dollar, against 71.0625 at previous close. The currency rose to 70.9450 earlier today tracking broad weakness in the dollar, before falling to day’s low of 71.48, its lowest since Feb. 18.
- Indian shares retreated in midday trade after Pakistan said it shot down two Indian jets on Wednesday, escalating conflict between the two nuclear-armed neighbours, a day after Indian warplanes struck inside Pakistan.
- The broader NSE Nifty fell by 0.8% to 10,751.20 after rising as much as 0.96% earlier in the day and was last down 0.35% at 10,797.35, while the benchmark BSE Sensex declined by 0.7% to 35,735.330, after gaining up to 1.1% and was last down 0.24% at 35,886.23.
- Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.50% and the Shanghai Composite rose 0.42%. The Hang Seng lost 0.05%.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 0.44% while Germany’s DAX is off 0.33% and France’s CAC 40 is lower by 0.25%.
- The benchmark crude oil prices reversed early losses yesterday and closed 0.7% higher, as the Organization of the Petroleum Exporting Countries seemed to stick to its supply cuts despite pressure from U.S. President Donald Trump. It was last trading 0.38% higher at $65.46 per barrel.
- The dollar index slipped 0.4% yesterday and closed at a three-week low amid comments by the Federal Reserve Chair Jerome Powell that a patient policy approach was warranted despite robust U.S. growth.
- Weaker-than-expected U.S. housing starts data that declined 11.2% in December also weighed on the index. Meanwhile, U.S. consumer confidence improved in February, data released by The Conference Board showed. The index was last trading 0.1% higher at 96.13.