Financial Market Overview
27th September, 2018
- The Indian rupee erased early gains to turn lower against the dollar in afternoon trade, as oil importers stepped up greenback purchases amid a fall in the euro that lifted the greenback. However, dollar sales by a large state-run bank and a private lender limited further losses in the local unit.
- The rupee changed hands at 72.68 to a dollar, against 72.61 at close yesterday. It opened higher at 72.42 and rose to an intraday high of 72.39, tracking New Delhi’s decision yesterday to raise import duties on some non-essential items to control current account gap.
- The benchmark indices are trading lower in the afternoon trade ahead of September F&O expiry with Nifty breaching 11,000-mark.
- The broader NSE index was 0.55% down at 10992.90, while the benchmark BSE index was down 0.48% at 36366.96.
- Asian markets finished lower as of the most recent closing prices. Shanghai Composite is lower by 0.20% and Hang Seng looses 1.00%.
- European markets are lower today with shares in London off the most. The FTSE100 is down 1.66% while German DAX is off 0.86% and France’s CAC 40 is lower by 0.43%.
- The euro fell as much as half-a-percent and was last trading 0.3% lower to a one-week low on media reports that Italy’s cabinet meeting to decide on 2019 budget targets, could be delayed on difficulties in reaching agreement on the deficit. Italian bonds fell and the dollar index bounced by 0.5% tracking decline in euro.
- The benchmark Brent crude oil price rose over 1% to $82.18 per barrel, hovering near a four-year high, and reversing overnight losses of 0.6%, on looming sanctions on Iran that is expected to tighten supply.
- China’s central bank left short-term rates unchanged on Thursday, choosing not to follow a benchmark interest rate rise by the U.S. Federal Reserve despite the risk that it could that it could put renewed pressure on the yuan. The move by the People’s Bank of China means that it did not immediately adjust borrowing costs for interbank loans after the Fed raised its key rate overnight.