Sep 24 2018

Rupee snaps 2 days of winning streak on Oil surge, trade war tension

Financial Market Overview

24th September, 2018

Evening Coffee:-

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee fell for the first time in three sessions against the dollar, as crude oil prices jumped to a near-four-year high, while further escalation in the ongoing trade war between the U.S. and China weighed on investor sentiment.
  • The rupee ended at 72.63 to a dollar, against 72.1950 at close on Sep. 21. It fell to 72.7350 intraday, though further losses were limited on suspected intervention through state-run and private banks, likely on behalf of the Reserve Bank of India. Other Asian currencies also fell against the greenback.

 

Indian Equities:-

  • Indian shares fell more than 1 percent and ended lower for a fifth straight session on Monday, dragged by financials such as Indiabulls Housing Finance Ltdand Housing Development Finance Corp Ltdas investors continued to trim exposure to non-banking financial companies.
  • The benchmark BSE index closed down 1.46 percent at 36,305.02, its lowest close since July 11. The broader NSE index ended 1.58 percent lower at 10,967.4, its biggest single-day percentage loss since March 16.

 

Global Markets:-

  • European markets are trading lower today. The Spain’s IBEX35 is down 0.59%, Euro-zone’s Stoxx50 is off 0.37%, The Germany’s DAX fells 0.29%, the SMI lost 0.24% while France’s CAC 40 and London’s FTSE both are trading lower by 0.20%.
  • The benchmark Brent crude oil contract was trading 2.3% higher at $80.62 per barrel, at its highest levels since November 2014, on lower U.S. crude inventories and looming sanctions on Iran, which outweighed reports of major oil producers mulling to increase output by 500,000 barrels per day.
  • The dollar index was trading flat against Friday’s gains of 0.3%, ahead of a near-certain rate hike by the Federal Reserve later this week.
  • The headline German Ifo business climate climbed to 103.7 in September, a tad weaker than last month’s 103.8 but surpassed the consensus estimates pointing to a downtick to 103.2.
  • The ECB President Draghi’s testimony scheduled at 06.30PM IST. Draghi is due to testify about the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee, in Brussels.