Financial Market Overview
6th February, 2019
- The Indian rupee stayed little changed against the dollar in thin afternoon trade, as investors remained on sidelines awaiting monetary policy decision at home tomorrow. Participants also awaited comments from Federal Reserve chief Jerome Powell tomorrow at a speech.
- The rupee changed hands at 71.60 to a dollar, against 71.56 at previous close. The currency opened at 71.55 and has moved in a narrow 13-paisa band so far.
- Indian shares rose for a fifth straight session on Wednesday, with Tech Mahindra Ltd leading gains in IT stocks, while investors also await the outcome of a three-day central bank policy meeting that ends on Thursday.
- The broader NSE index was up 0.98% at 11,041.15, while the benchmark BSE index was 0.85% higher at 36,927.69.
- Asian shares were subdued following a weeklong holiday in China for the Chinese New Year. Markets in Hong Kong are also closed today. Japan’s Nikkei 225 finished higher by 0.14%.
- European markets are lower today. The CAC 40 is down 0.39%, London’s FTSE 100 is down 0.30% and Germany’s DAX is up 0.23% while Spain’s IBEX35 is down 0.03%.
- Crude oil prices were trading 0.34% lower at $61.77 per barrel, in choppy trade.
- The dollar index was trading 0.1% higher at 96.20, after gaining 0.2% in overnight trade to over one-week high tracking fall euro followed by weak economic data. However, dovish stance by the Fed weighed on the U.S. Treasury yields limiting further gains in the index.
- Dallas Fed President Robert Kaplan said yesterday, the U.S. central bank should keep interest rates at hold unless the outlook of the world’s largest economy is clear.
- Markets will look for further cues from Powell, who will speak at an event hosted by the Federal Reserve Bank of Richmond Charlotte branch tomorrow.