Financial Market Overview
30th January, 2019
- The Indian rupee recouped most of its early losses to end little changed against the dollar, on greenback sales by foreign banks amid broad weakness in the U.S. currency ahead of Federal Reserve’s policy decision today.
- The rupee settled at 71.12 to a dollar, against 71.11 at previous close. The currency opened at 71.36, its lowest since Jan. 23, but trimmed losses and rose to an intraday high of 71.11. Most Asian currencies ended higher against the greenback.
- Foreign banks that purchased dollars in early trade tracking higher offshore rates and spike in crude oil prices, reversed their long dollar positions ahead of today’s Fed policy review. Participants are also keeping their positions light ahead of federal budget.
- Indian shares ended little changed on Wednesday, recovering from early session lows, as investors remained on the sidelines ahead of multiple macro pointers this week including the federal budget on Friday and China-U.S. trade talks.
- The benchmark BSE index ended at 35,591.25. The broader NSE index was also barely changed at 10,651.8.Losses in Housing Development Finance Corp Ltd which closed down 2.26 percent, were curbed by strong gains in private-sector lenders Axis Bank Ltd and ICICI Bank Ltd which closed up 4.6 percent and 5.5 percent, respectively.
- European markets are mixed today. The FTSE 100 is up 1.01% while the CAC 40 gains 0.47%. The DAX is off 0.42%.
- A sluggish day ended mixed, with the Dow posting a slight gain, the S&P 500 slipping a touch and the Nasdaq dropping 0.8 percent. Communication services lagged most among major S&P 500 sectors, falling 1.1 percent. Industrials were the biggest gainers, rising 1.4 percent.
- Stocks were bracing for earnings results from market heavyweight Apple after the bell. Apple shares fell ahead of their results as did shares of Microsoft and Amazon.com which were set to report results later this week.
- Euro zone economic sentiment fell by more than expected to a two-year low in January as all components except consumers and the construction sector became more pessimistic about the bloc’s prospects at the start of the year. Euro zone economic sentiment slipped to 106.2 points in January from a slightly revised 107.4 in December, the European Commission said, marking the seventh consecutive monthly fall and the lowest level since November 2016.
- Lending to British consumers grew at its slowest pace in four years in December, Bank of England data showed on Wednesday, underscoring the loss of momentum in the economy ahead of Brexit. The annual growth rate in unsecured consumer lending weakened to 6.6 percent from 7.2 percent in November, the smallest increase since December 2014, the BoE figures showed.
- German consumer sentiment picked up heading into February as consumers became more optimistic about their incomes and were more willing to buy, but they became more pessimistic about the economy due to concerns about trade disputes and Brexit. GfK market research group’s consumer sentiment indicator, based on a survey of around 2,000 Germans, rose to 10.8 points heading into February from a revised 10.5 points the previous month. That beat the forecast of 10.3.