Financial Market Overview
20th December, 2018
- The Indian rupee turned higher against the dollar in afternoon trade, as greenback sales by one large corporate entity and foreign banks erased early losses from a less-dovish-than-expected commentary from the Federal Reserve.
- The rupee changed hands at 70.10 to a dollar against 70.40 at close yesterday. It opened lower at 70.68, before rising to day’s high of 70.03.
- Indian shares were trading lower, tracking losses in most Asian shares, as markets were disappointed by the Fed’s less dovish tone.
- The broader NSE index declined 0.40% to 10,923.90, and the benchmark BSE index was 0.39% lower at 36,341.96.
- Asian markets finished broadly lower on Wednesday with shares in Japan leading the region. The Nikkei 225 is down 2.84% while Hong Kong’s Hang Seng is off 0.96% and China’s Shanghai Composite is lower by 0.52%.
- European markets are also lower today. The DAX was down 1.39% while the FTSE 100 lost 1.54%. The CAC 40 was down 1.59% while IBEX35 lost 1.52%.
- The benchmark Brent crude oil contract was trading 1.8% lower at $56.21 per barrel, erasing overnight gains of 1.7% amid worries about oversupply and as outlook for the global economic growth raises concerns on demand.
- The Bank of Japan kept monetary policy steady on Thursday and stuck to its optimistic view on the economy, even as simmering Sino-U.S. trade tensions and volatile financial markets cloud the outlook for global growth.
- The euro gained on the dollar to $1.1425. The single currency was supported by news Italy had struck a deal with the European Commission over its contested 2019 budget.