Financial Market Overview
21st May, 2018
MARKETS AT Noon:-
- Indian rupee was headed for a second consecutive session of losses against the dollar, in line with Asian peers, after comments from the top U.S. Treasury official eased fears of a full-blown trade war between the U.S. and China.
- Rupee was last seen at 68.13 to a dollar, against 68.0050 at the previous close. It opened at 68.12 and extended the fall to 68.16, also lowest since Jan. 27, 2017, but has since pared some losses, helped by dollar sales from state-run banks. The offers could have been on behalf of the Reserve Bank of India, though the same could not be confirmed.
- Indian shares slipped for a fifth straight session on Monday as the political situation in Karnataka clouded the outlook for general elections next year and left markets uneasy.
- The 30-share BSE Sensex was down 161.47 points at 34,686.83 and the 50-share NSE Nifty fell 61.90 points to 10,534.50.
- Asian markets finished higher on Friday with shares in Hong Kong leading the region. The Hang Seng is up 0.66% while China’s Shanghai Composite is up 0.64% and Japan’s Nikkei 225 is up 0.31%.
- European markets are higher today as French and British shares show gains. The CAC 40 is up 0.52% while the FTSE 100 is up 0.68%. The German DAX is closed.
- The dollar index was last trading up 0.37%, highest since mid-December against a basket of six major currencies, after the world’s two largest economies put a joint statement that they would work towards “substantially” reducing the U.S. trade deficit with China. It ended 0.2% higher overnight. The statement, along with remarks by U.S. Treasury Secretary Steven Mnuchin that a trade war with China was “on hold,” prompted a rally in the dollar. The U.S. administration will suspend its plans to impose tariffs on imports from China amid progress in the trade negotiations, Mnuchin said.
- The chief minister of the southern India state quit on Saturday, after just two days in office, as his Bhartiya Janata Party was unable to drum up the support of a majority of legislators in the state assembly. This allows the main opposition Congress party and a regional ally to form a government in the state and is expected to galvanise opponents of Prime Minister Narendra Modi ahead of elections that must be held by May next year.