money-currency-investment-idea
Dec 12 2017

Rupee stays lower as Oil price spikes; Fed meet in focus

Financial Market Overview

12th December, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee remained lower against the dollar in afternoon trading, as a surge in global crude oil prices raised inflation concerns, hurting demand for domestic assets. Investors were also cautious ahead of a near-certain rate increase by the U.S. Federal Reserve tomorrow.
  • The rupee was last seen at 64.46 to a dollar, against 64.36 at close in the previous session. The currency had opened at 64.41, extending losses to 64.52 per dollar. Most other Asian currencies were flat to lower against the dollar.

Indian Equities:-

  • Sell-off continues in the market in afternoon. The Sensex is trading more than 150 points lower and Nifty continued to struggle below 10,300 on rising crude oil prices.
  • Private banks, Auto, FMCG and IT stocks were under pressure while select PSU banks, metals and pharma stocks gained.
  • The 30-share BSE Sensex was down 168.12 points at 33,287 and the 50-share NSE Nifty fell 57.05points to 10,265.20.

Global Markets:-

  • European markets are mixed today. The CAC 40 is down 0.28% while the FTSE 100 gains 0.02%. The DAX is off 0.05%.
  • Asian markets finished broadly lower today with shares in China leading the region. The Shanghai Composite is down 1.25% while Hong Kong’s Hang Seng is off 0.59% and Japan’s Nikkei 225 is lower by 0.32%.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading little changed, as investors awaited the conclusion of the Federal Reserve’s two-day monetary policy meeting tomorrow, where the authority is widely expected to increase rates for a third time in 2017.
  • However, markets will focus more on the pace of interest rate increases next year. A poll of economists showed most of them expect the outgoing Fed chair Janet Yellen to announce three more rate increases in 2018. In June, the Fed had raised interest rates for a second time in three months.
  • The Fed is also in the process of trimming its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities, which was built during the 2007-2009 financial crisis and global recession.