Financial Market Overview
28th November, 2018
- The Indian rupee remained higher against the dollar in afternoon trade, aided by likely equity-related dollar inflows amid greenback sales by exporters. However, further gains were capped on caution ahead of Federal Reserve’s Chair Jerome Powell’s speech later today.
- The rupee changed hands at 70.70 to a dollar, against 70.76 at close yesterday. It opened lower and extended losses to 70.89, before erasing gains and rising to the day’s high of 70.60.
- Indian shares rose on Wednesday, boosted by IT stocks, while broader Asian markets were lacklustre amid conflicting signals on prospects for de-escalating the Sino-U.S. trade dispute.
- The broader NSE index was up 0.46% at 10,734.75, while the benchmark BSE index rose 0.67% to 35,749.33.
- Asian markets are higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.23% while China’s Shanghai Composite is up 1.05% and Japan’s Nikkei 225 is up 1.02%.
- European markets are also higher today. The DAX is up 0.40% while the FTSE 100 gains 0.49%. The CAC 40 is up 0.39% and IBEX35 gains 0.63%.
- The benchmark Brent crude oil prices continued to trade sideways, hovering around $60 per barrel levels ahead of the Organization of the Petroleum Exporting Countries meeting on Dec. 6 to consider a proposal to trim output. It was last trading 1.33% higher at $61.01 per barrel.
- The dollar index rose for the third straight day yesterday to a two-week high supported by remarks made by Fed Vice Chair Richard Clarida. The index was last trading steady at 97.52. It also got a boost amid comments by White House Economic Adviser Larry Kudlow that suggested that Washington was prepared to raise tariffs on imports from China.
- Markets now await Fed Chair Powell’s speech later today, ahead of the minutes of the Fed’s latest meeting held earlier this month to gauge if the authority remains on track for a December rate hike and also about the pace of likely rate increases next year. U.S. will also release second gross domestic product estimates today.