Financial Market Overview
26th November, 2018
- The Indian rupee erased early gains to record its first fall in eight sessions against the dollar, as importers stepped up greenback purchases, while crude oil prices recovered from losses in the previous session.
- The rupee settled at 70.87 to a dollar, against 70.67 at previous close on Nov. 22. It opened higher at 70.46 and extended gains to 70.30, highest since Aug. 29, before falling to the day’s low of 70.90.
- Brent crude oil prices slumped more than 6% on Nov. 23, dropping below a psychologically important level of $60 per barrel to close at $58.80.
- Indian shares rose about 1 percent on Monday in volatile trading, led by gains in index heavyweights HDFC Bank Ltd and consumer goods giants Hindustan Unilever Ltd and ITC Ltd.
- The benchmark BSE index ended 1.07 percent higher at 35,354.08, while the broader NSE index climbed 0.97 percent higher to 10,628.60
- European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.16% while France’s CAC 40 is up 1.16% and London’s FTSE 100 is up 0.98%. The euro zone has lost some growth momentum and headwinds are becoming increasingly noticeable but the recent fall in oil prices is positive for growth, European Central Bank chief economist Peter Praet said on Monday. The ECB is slowly dialling back stimulus and plans to end a 2.6 trillion euro bond purchase scheme next month, raising some concern that it is cutting support just as the real economy is weakening.
- U.S. stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018. The three major U.S. indexes all fell well over 3 percent for the week, with the Dow industrials and the Nasdaq posting their biggest weekly percentage declines since March. The S&P 500 ended about 10.2 percent down from its Sept. 20 closing record high, confirming it had entered a correction.
- The S&P last entered a correction earlier this year after posting a then record high in late January, and falling more than 10 percent by early February. That correction lasted roughly seven months, until the index posted a fresh record high in late August.
- German business morale fell by more than expected in November as a trade dispute between China and the United States weighed on Germany’s export sector and hurt the economy. The Munich-based Ifo economic institute said on Monday its business climate index fell for the third month in a row to 102.0.