Financial Market Overview
19th October, 2018
- The Indian rupee stayed higher against the dollar in afternoon trade, as exporters sold the greenback and lower crude oil prices helped the local currency. However, weak local shares and hawkish minutes of the Federal Reserve kept the gains in check.
- The rupee changed hands at 73.51 to a dollar, against 73.5950 at close on Oct. 17. It opened flat and fell to the day’s low of 73.65 before rising to 73.39. Indian financial markets were shut yesterday for a local holiday.
- Indian shares dropped for a second straight session on Friday, with index heavyweight Reliance Industries Ltd sliding as much as 7% after the company’s gross refining margin hit a three-and-a-half year low.
- The broader NSE index was down 1.32% at 10,315.05 while the benchmark BSE index was 1.17% lower at 34,372.42.
- Markets are jittery. For companies that have come out with results, there seems to be a sell-on-news mood as there is nothing to look forward to in the near term.
- Asian shares are trading higher today. The Hang Seng gains 0.61% and Shanghai Composite is up 2.58%.
- European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.28% while France’s CAC 40 is up 0.15% and Germany’s DAX is up 0.14%.
- The benchmark Brent crude oil contract was trading below $80 per barrel and was set to post a weekly decline for the second straight week, as U.S. Crude inventories last week jumped 6.5 million barrels. The contract was last at $79.61, moving further away from a multi-year high of $86.74 hit at the beginning of this month.
- The dollar index was last trading 0.2% higher, adding to its gains in previous two sessions after Fed’s September meeting minutes showed policy makers broadly agreed on the need to raise interest rates further. The benchmark 10-year U.S. Treasury yield rose to 3.2170% overnight before easing to 3.1750% at close.
- The Chinese yuan was trading marginally higher at 6.9320 against the dollar after closing at its lowest level since January 2017 in the previous session. Data today showed Asia’s largest economy grew 6.5% in the July-September quarter, at its weakest pace since the first quarter of 2009, amid ongoing trade dispute with the U.S.