Financial Market Overview
5th October, 2018
- The Indian rupee was trading little changed against the dollar in afternoon trade, as market participants awaited the rate-setting Monetary Policy Committee’s interest rate decision later today. An overnight easing in global crude oil prices helped provide some respite to the local currency that has witnessed heavy sell-off in recent sessions.
- The rupee was trading at 73.59 to a dollar, against a record-low close of 73.5750 yesterday. It opened at the day’s low of 73.65 but managed to pare losses and rose to 73.43 on foreign banks’ dollar sales.
- Benchmark indices extended losses ahead of Monetary Policy Committee’s interest rate decision due later in the day. The BSE Sensex fell, dragged by oil, metals and FMCG stocks.
- The BSE Sensex fell 1.19 percent to 34,750.78 and the NSE Nifty shed 1.59 percent to 10,430.95.
- Markets in China are closed today on account of National day. Shares in Hong Kong are lower today as the Hang Seng falls 0.11%.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 3.11% while France’s CAC 40 is off 0.22% and Germany’s DAX is lower by 0.30%.
- The Brent crude oil price was last trading at $84.83 per barrel. Earlier this week, the price rose to as much as $86.74, highest since end-October 2014 and was on course for their sixth weekly advance in the last seven.
- Rise in dollar index boosted by higher U.S. Treasury yields have added to concerns for the rupee. Yield on the benchmark 10-year Treasury was little changed at 3.19% today after rising to their highest in more than seven years in the prior two sessions on upbeat U.S. economic data and hawkish Federal Reserve policy.
- The European Union’s Brexit negotiators told national diplomats in Brussels that a divorce deal with Britain was very close. The EU signalled that it was engaging with new proposals emerging in Britain on how to avoid extensive checks on the Irish border after Brexit, a key potential deal-breaker in the unprecedented talks.