Financial Market Overview
25th September, 2018
MARKETS AT Noon:-
- The Indian rupee remained lower against the dollar in afternoon trade, as sustained rally in global crude oil prices to a four-year high overshadowed intraday recovery in local shares.
- The rupee changed hands at 72.82 to a dollar, against 72.63 at close yesterday. Intraday, it fell to 72.9550, within striking distance of its lifetime low of 72.99 hit last week but managed to pare some losses on likely intervention from the central bank.
- Indian markets steadied after an early wobble on Tuesday despite a rupee currency dangerously close to record lows, and abiding fears that problems at two large non-banking financial companies could signal a wider credit crunch.
- The broader NSE index was 0.07% up at 10975.45, while the benchmark BSE index had gained 0.4% at 36452.03.
- Asian market finished mixed as of the most closing prices. The Nikkei 225 gained 0.29%, while the Shanghai Composite fell 0.58%. The Hang Seng is closed today.
- European markets are also mixed today. The French CAC 40 gains 0.12% and German DAX is up by 0.05% while The London’s FTSE 100 is off 2.19%. The benchmark Brent crude oil contract was trading at its highest levels since November 2014, extending yesterday’s gains on anticipation of weak supply amid looming U.S. sanctions against Iran and reluctance by the OPEC to raise output. The contract rose 3% yesterday and was last up 0.36% to $81.49 to a barrel.
- The dollar index, which measures the greenback’s strength against a basket of six major currencies, dipped 0.11% to 94.28.
- The two-day Federal Reserve meeting begins today, with expectations of a quarter-percentage rate hike accompanied by hawkish commentary.
- Trade concerns remained to the fore after the U.S. and China imposed fresh tarrifs on each other’s imports on Monday, escalating a trade spat which markets fear could act as a drag on global growth.
- The single currency remained supported after European Central Bank President Mario Draghi said the pickup in inflation in the euro zone was relatively vigorous and appeared confident that an acceleration in wage growth would continue.