Financial Market Overview
1st October, 2018
- The Indian rupee continued to trade lower against the dollar in afternoon session, as the Brent crude oil contract rose past $83 a barrel, while local shares declined to three-month lows. However, RBI’s move to support liquidity in local bonds helped rupee from falling to record lows.
- The rupee changed hands at 72.83 to a dollar against 72.48 at close on Sep. 28. It has traded in a 24 paisa range of 72.60 to 72.84 so far.
- India’s benchmark BSE Sensex was lower amid sell-off in financial stocks. Non-banking financial companies continued to remain under pressures amid recent troubles at Infrastructure Leasing & Financial Services and Dewan Housing Finance, which had pulled the Sensex down by 6% last month.
- The broader NSE index was down 0.48% at 10878.30, and the benchmark BSE index was trading lower by 0.23% at 36142.56.
- Markets in China and Hong Kong are closed today on account of National day.
- European markets are mixed today. The DAX is up 0.60% while the CAC 40 gains 0.24%. The FTSE 100 is off 1.47%.
- The Brent crude oil contract edged higher to $83.32 a barrel in Asia trading to fresh four-year highs, adding to the previous session’s over one percent advance. It was last up 0.11% at $82.82 per barrel.
- The Canadian dollar rallied half a percent against the U.S. dollar on Monday as investors rushed to buy riskier assets after the United States and Canada agreed to update the North American Free Trade Agreement. The two countries reached an agreement, which involved offering more dairy access to U.S. farmers and Canada agreeing to a side-letter arrangement effectively capping automobile exports to the United States.
- Sentiment was more subdued in the European session. Italian bond yields surged in opening trade on a report the European Commission was set to reject Italy’s budget plans in November and open a procedure against the country’s public accounts in February.
- The dollar index rose a fifth of a percent to 95.32, just below a Sept. 10 high of 95.38 in the previous session.