Financial Market Overview
04th December, 2018
- The Indian rupee was little changed against the dollar, as sentiment remained cautious ahead of tomorrow’s outcome of the Monetary Policy Committee’s interest rate decision and meeting of oil exporting group OPEC and its allies this week. The rupee settled at 70.49 to a dollar, against 70.45 at close yesterday. The currency opened lower at 70.49, before rising to day’s high of 70.32 and dropping to day’s low of 70.68, despite gains in most Asian currencies.
- Higher oil prices continue to build pressure on the rupee. Also, movement in the local currency has diverged from the trend that other emerging market currencies are following and that is because there are lot of risks due to upcoming key events “MPC and OPEC meet remains crucial.
- Shares have closed lower, amid caution ahead of RBI’s monetary policy committee meeting outcome on Wednesday. Uncertainty over US-China trade truce has also weighed on indices. Among sectors, weakness was visible among automobiles, banks, consumption and infrastructure names, while IT and pharma index ended in the green.
- The Nifty Midcap index was lower by around one-third of a percent. At the close of market hours, the Sensex closed down 106.69 points or 0.29% at 36134.31, while the Nifty was lower by 14.30 points or 0.13% at 10869.50. The market breadth is negative as 1154 shares advanced, against a decline of 1393 shares, while 143 shares were unchanged.
- European markets are lower today with shares in Germany off the most. The DAX is down 0.58% while France’s CAC 40 is off 0.47% and London’s FTSE 100 is lower by 0.45%.
- Wall Street’s major indexes rallied on Monday following a truce between the United States and China in their trade dispute, which has clouded the outlook for the stock market for much of the year.The Dow Jones Industrial Average rose 287.97 points, or 1.13 percent, to 25,826.43, the S&P 500 gained 30.2 points, or 1.09 percent, to 2,790.37 and the Nasdaq Composite added 110.98 points, or 1.51 percent, to 7,441.51. Last week, the S&P 500 gained 4.8 percent as investors interpreted commentary from the Federal Reserve as signaling that U.S. interest rate hikes may be less aggressive than feared. The index rebounded after confirming its second 10 percent correction of the year, and is now up 4.4 percent in 2018.
- British construction activity grew at the fastest pace in four months in November, spurred by house-building and commercial work, though Brexit worries weighed on firms’ outlook for the coming year, a survey showed on Tuesday. The IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) rose to 53.4 from 53.2 in October, confounding the consensus forecast for a fall to 52.5.
- British consumer spending grew last month at its slowest pace in more than a year, excluding Easter distortions, with online Black Friday sales failing to offset a lack of confidence about the economy ahead of Brexit, industry data showed on Tuesday.