Financial Market Overview
11th October, 2018
- The rupee recovered after a senior financial ministry official’s comments that Indian authorities will take more steps, if needed, to check the rupee from falling further and limit widening of the current account deficit that threaten to tip the macroeconomic balance in Asia’s third largest economy.
- The rupee was trading at 74.13 to dollar against 74.20 previous close, bouncing form a high of 74.03 touched in the afternoon session.
- Benchmark indices were trading lower tracking a selloff in Asian assets triggered by the biggest decline in the Wall Street in eight months. Infosys and index heavyweight Reliance Industries led the losses. However, indices have recovered from low points.
- The BSE Sensex was down 1.34% at 34296.22 and NSE index was down 1.29% at 10325.10.
- Asian markets are lower today. The Hang Seng falls 3.56% and Shanghai Composite looses 5.22%.
- European markets are broadly lower today with shares in London off the most. The FTSE 100 is down 7.66% while France’s CAC 40 is off 1.46% and Germany’s DAX is lower by 1.30%.
- The benchmark Brent crude oil contract declined 1.24% and was last trading at $82.06 per barrel, extending yesterday’s 2.2% loss amid the rout in global stock markets and larger-than-expected build-up in the U.S. crude inventories. Oil market now await re-imposition of sanctions on Iran exports by the U.S., which will kick in on Nov. 4.
- The dollar index was last trading down 0.2% while the U.S. 10-year Treasury yield eased after rising to seven-year highs earlier this week. The yield was last down seven basis points at 3.1573% while the index was trading off 0.2%. Recent hawkish commentary from the Fed and upbeat U.S. economic data had prompted a sell-off in the U.S. bonds earlier this week, boosting yields to a multi-year high. Investors now await consumer price data from U.S., due later today, for further cues.