Financial Market Overview
26th September, 2018
- The Indian rupee came off highs to trade little changed against the dollar in afternoon session, as importers stepped up greenback purchases in low volume trade ahead of outcome of the Federal Reserve’s policy review, offsetting early gains from exporters’ dollar sales.
- The rupee was at 72.70 to a dollar, from 72.69 at close yesterday. It opened little changed at 72.70 and has remained in 72.57-72.74 to dollar band.
- Indian equities have come under pressure in recent days amid a tumble in shares of non-banking financial companies due to liquidity worries and concerns over the fallout of a default by Infrastructure Leasing & Financial Services.
- The broader NSE index was 0.54% down at 11007.45, while the benchmark BSE index was down 0.68% at 36404.00.
- Asian markets finished mixed as of the most recent closing prices. Shanghai Composite is higer by 0.33% while shares in Hong Kong are lower today as the Hang Seng looses 0.52%.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 1.65% while Germany’s DAX is off 0.21% and France’s CAC 40 is lower by 0.09%.
- Traders largely expect a near -certain Fed interest rate hike of a quarter percentage point later today. With the Fed’s third rate increase this year well discounted, market participants will focus on the dot -plots and the accompanying statement to gauge whether another rate increase is coming in December.
- The dollar index continued to trade range -bound and was last trading off 0.04%. The yield on the benchmark 10 -year U.S. Treasury was at 3.09% against 3.10% yesterday.
- The benchmark Brent crude oil prices, which rose to $82.55 per barrel yesterday, its highest since November 2014, was last trading 0.13% higher at $81.98 despite U.S. officials, including President Donald Trump, called on OPEC members to raise crude output ahead of sanctions on Iran by the world’s largest economy take effect.