Jan 22 2018

Rupee steady amid U.S government shutdown

Financial Market Overview

22nd January, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee was steady against the dollar, amid weak Asian cues in the wake of the U.S. government shutdown and as greenback purchases by foreign banks hurt appetite, even as strong local shares checked losses.
  • Investors await conclusion to a U.S. Senate vote on a stopgap funding for federal agencies after differences between Democrats and Republicans over immigration and border security forced a government shutdown.
  • The rupee was last seen at  63.80 to a dollar against 63.85 at close on Jan.19. It had earlier fallen to 64.00, its lowest since Jan. 17, weighed down by greenback purchases by at least two large U.K-based banks. Most other Asian peers were flat to lower against the greenback.

Indian Equities:-

  • Indian equity indexes hit all-time highs on Monday as Reliance Industries rallied after posting a record quarterly profit, while Oil and Natural Gas Ltd gained after saying it would buy a majority stake in Hindustan Petroleum Corp Ltd.
  • The broader NSE index was up 0.31 percent at 10,928.05. The benchmark BSE index was 0.45 percent higher at 35,672.61. The index had gained earlier in the session to hit a record high of 35,749.03.

Global Markets:-

  • European markets are mixed today. The DAX is up 0.10% , London’s FTSE 100 is up 0.06%  and France’s CAC 40 is down 0.07%.
  • Asian markets finished higher today with shares in Hong Kong leading the region. The Hang Seng is up 0.43% while China’s Shanghai Composite is up 0.39% and Japan’s Nikkei 225 is up 0.03%.
  • The dollar index, which measures the greenback against a basket of six major rivals, managed to pare intraday losses and end up 0.08% on Friday owing to support from U.S. treasury yields. However, investor sentiment remained weak amid a U.S. government shutdown at midnight Friday after funding for federal agencies ran out.
  • A bill for an extension of federal funds through Feb. 16, already approved by the House of Representatives earlier last week, hit a wall in the Senate owing to a disagreement between President Donald Trump and Democrats over issues of immigration.
  • The index also came under pressure tracking strength in the euro amid bets the European Central Bank would soon begin trimming its massive monetary policy stimulus. It was last trading 0.1% higher.
  • The benchmark Brent crude oil price fell over 1% on Jan. 19, as investors sold positions on renewed U.S. production concerns. It was last trading up 0.26% at $68.79 per barrel, after Saudi Arabia said yesterday that major oil producers were in agreement that supply cuts can continue well beyond 2018.