Financial Market Overview
03rd January, 2019
- The Indian rupee was little changed against the dollar, as foreign banks stepped up greenback sales likely for their custodian clients, trimming early losses triggered from global risk aversion that weighed on equities. The rupee settled at 70.19 to a dollar, its lowest since Dec. 27, against 70.17 at close yesterday. It opened lower and extended fall to the day’s low of 70.52, before turning higher to 70.04 in late afternoon trad.
- The rupee has been dragged lower by a set of negative news in the global markets, including concerns on slowdown in global economic growth, which has made outlook for regional assets bleak. “However, some bunched-up dollar inflows as global markets reopened after New Year holidays and some custodian inflows with foreign banks helped the rupee to recover early losses.
- A drag in index heavyweights, selling in banks along with weakness in metals and pharmaceuticals ensured that bears went home victorious on Thursday.
- The Nifty gave up 10,700-mark. At the close of market hours, the Sensex was down 377.81 points or 1.05% at 35513.71, and the Nifty lower by 120.20 points or 1.11% at 10672.30. The market breadth was negative as 962 shares advanced, against a decline of 1,588 shares, while 151 shares were unchanged.
- European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.20% while France’s CAC 40 is off 1.15% and London’s FTSE 100 is lower by 0.43%.
- Wall Street edged nominally higher on Wednesday after stumbling out of the starting gate on the first trading day of the new year as bargain-hunting was offset by fears of a global economic slowdown. The Dow Jones Industrial Average rose 18.78 points, or 0.08 percent, to 23,346.24, the S&P 500 gained 3.18 points, or 0.13 percent, to 2,510.03 and the Nasdaq Composite added 30.66 points, or 0.46 percent, to 6,665.94.
- Activity in the UK construction sector slowed last month as political uncertainty from Brexit weighed. Construction purchasing managers’ index fell to 52.8in December, compared to forecasts for a reading of 52.9.
- Businesses in Britain’s dominant services sector reported the slowest sales growth in two years during the final three months of 2018, another sign of a slowing economy ahead of Brexit, the British Chambers of Commerce said on Thursday. Many retailers had reported difficulties in the run-up to Christmas, but Thursday’s findings — from Britain’s largest private-sector economic survey point to a broader slowdown among businesses that rely on consumer spending.
- The 10-year note yield was last at 2.63 percent, breaching the key technical level of 2.64 percent. Ten-year yields fell nearly 6 basis points on the day, their largest one-day fall in a month.
- China’s central bank said late on Wednesday it was adjusting policy to benefit more small firms that are having trouble obtaining financing, in its latest move to ease strains on the private sector.