Financial Market Overview
03rd December, 2018
- The Indian rupee fell for the first time in five sessions against the dollar, as crude oil prices rose sharply amid slower-than-expected domestic economic growth. The rupee settled at 70.45 to a dollar, against 69.59 at previous close on Nov. 30, posting the largest single-session decline since Aug. 13. Most other Asian currencies rose against the dollar as risk sentiment improved after a truce in the U.S.-China trade conflict.
- The fall in the rupee was anticipated which was triggered due to jump in crude oil prices and as the domestic data releases failed to give investors confidence in the local unit, More depreciation in the rupee is likely since we have events lined up, including the monetary policy outcome, OPEC meet and state election outcome.
- After trading around the flat line for a greater part of the session, equity benchmarks have ended in the green. The Nifty failed to close above 10,900, though.
- At the close of market hours, the Sensex was up 46.70 points or 0.13% at 36241.00, while the Nifty was higher by 7.00 points or 0.06% at 10883.80. The market breadth was narrow as 1,328 shares advanced, against a decline of 1,263 shares, while 160 shares were unchanged.
- European markets are sharply higher today with shares in Germany leading the region. The DAX is up 2.39% while London’s FTSE 100 is up 2.12% and France’s CAC 40 is up 1.46%.
- U.S. stock index futures jumped on Sunday after China and the United States agreed at a G20 summit to shelve any new tariffs and reset discussions for 90 days, at least temporarily halting an increase in their tensions over trade.
- S&P 500 e-mini futures were up 1.55 percent as trading resumed, on high contract volume. Dow Jones Industrial Average e-mini futures rose 1.66 percent, while Nasdaq 100 e-mini futures jumped nearly 2 percent.
- Global economic prospects appear gloomy as year-end approaches after factory activity and export orders weakened in November, prompting analysts to predict no quick rebound amid persistent global trade tensions. Corporate sentiment is taking a hit from the worries over protectionism, manufacturing activity slipped in November in countries as varied as France, Germany, Indonesia and South Korea, IHS Markit Purchasing Managers’ Indexes showed on Monday.
- UK manufacturing sector accelerated slightly last month, but remained subdued as new export business dropped for a second straight month, according to a closely watched business survey released on Monday. Manufacturing purchasing managers’ index rose to 53.1 in November, up from October’s 27-month low of 51.1
- Euro zone manufacturing activity expanded at its weakest rate in over two years in November as new orders contracted for a second month.