In fortnight from 1st to 15th August 2018, global markets remained mixed as U.S. bourses gained while Europe and Asia traded down.

• International Market

  U.S. markets remained positive on upbeat corporate earnings and after a major IT company reached $1 trillion market capitalisation.

  European markets came under pressure from intensified U.S.-China trade altercations wherein China vowed to retaliate to U.S. protectionist moves.

  European Central Bank showing concern over a falling Turkey currency and its effects on European banks dampened sentiment. Upbeat economic data cushioned the fall.

  Asian markets too were overshadowed by the trade dispute between U.S. and China. U.S. Federal Reserve hinting at additional rate hikes in 2018 made investors wary. Positive economic data came to the rescue and losses were restricted.

• Indian Market

  The banking sector gained in the fortnight after the Reserve Bank of India (RBI) announced to pay dividend of Rs. 50,000 crore to the government. Gains were limited by RBI increasing interest rates by 25 bps to 6.5% and downbeat quarterly results of major banks.

  The consumer sector moved up during the period driven by impressive results for the quarter ended June 2018 from consumer durable companies.

  Auto & Auto Ancillaries sector ended on a lower note for the fortnight under review. Oil and gas sector decreased on weaker rupee against the U.S. dollar but lower global crude oil prices came to the rescue.

  The rupee went down against the greenback because of free fall in Turkish lira, trade war tensions between the U.S. and China and greenback demand from oil importers.

Source: MFI Explorer

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