Financial Market Overview
1st February, 2019
- The Indian rupee rose after India aimed to keep its fiscal deficit steady at 3.4% of gross domestic product for the next financial year starting Apr. 1, while it said this year’s budget gap will widen to 3.4% from the initial projection of 3.3%.
- The Indian rupee was last trading little changed at 71.10 to dollar, from previous close of 71.0750. It had briefly risen to 70.9550 during the budget speech after falling to 71.2150 before the budget presentation.
- Indian equities held on to its gains after the interim Finance minister Piyush Goyal on February 1 said that the government has revised upwards the 2018-19 fiscal deficit target to 3.4% from the Budgeted 3.3%.
- After the announcement, the BSE Sensex was trading 461 points or 1.27% higher at 36,717.72, while the Nifty held on 134 points or 1.23% higher at 10,964.65.
- Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 1.30% and the Nikkei 225 rose 0.07%. The Hang Seng lost 0.13%.
- European markets are higher today. The CAC 40 is up 0.18%, London’s FTSE 100 is up 0.24% and Germany’s DAX is up 0.09% while Spain’s IBEX35 is up 0.11%.
- Oil prices held steady on Friday, caught between hopes the United States and China could soon settle their trade disputes and new data raising fresh concerns over China’s economic slowdown. The benchmark Brent crude oil contract was trading 0.10% higher at $60.90 per barrel.
- The dollar index, a gauge of its value versus six major peers, was steady at 95.60. The dollar is widely expected to weaken this year as the Federal Reserve turns more cautious about further rate increases.
- Investors now focus on the U.S. jobs data due later today. Trade talks between the United States and China could also have an impact on the dollar, which has acted as a safe-haven in times of uncertainty.