{LONGTERMINVESTORS} Fwd: Morning Market Starter- April 29, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Fri, Apr 29, 2016 at 10:49 AM
Subject: Morning Market Starter- April 29, 2016
To: stockdesai@gmail.com

On the radar: Markets await data for Eurozone's inflation for April, GDP for Q1 2016 (advance estimates) and US PCE inflation for March due later today. Central Bank watch: Bank of Japan Governor Haruhiko Kuroda reiterated his statement of deploying negative interests further if necessary, in his post policy speech yesterday. He also added that the Board did not discuss negative interest on loans to banks in their April policy meeting. European Central Bank Executive Board member Peter Praet said that the tool of negative interest rates will further be deployed only in the case of a "worsening inflation outlook". Additionally, he pointed out that helicopter money brings with itself "legal difficulties" and the option has not been considered yet. Bank of England Governor Mark Carney said that the UK economy is doing "pretty well", though uncertainties from the impending Britain referendum pose downside risks. He further said that wages are expected to pick up pace and if it does, it should be warranted to make "modest and gradual interest rate rises". Chart: US Q1 2016 GDP (advance estimates) slid lower to 0.5% QoQ (ann.) vs. prior print of 1.4% QoQ (ann.) Global market developments: Macroeconomic Data: o UK: Nationwide house price index came in downbeat, with the reading at 0.2% MoM vs. prior (revised) print of 0.7% MoM. GfK consumer confidence in April sharply declined to (-) 3.0 levels relative to a flat reading in the previous month. o EZ: Consumer confidence was unchanged in April (final reading), coming in at (-) 9.3 levels. o GE: Headline CPI inflation edged lower in April, coming in at 0.1% YoY vs. 0.3% YoY previously. o US:  Q1 2016 GDP print (advance estimates) slid lower to 0.5% QoQ as against prior print of 1.4% QoQ. Initial jobless claims for the week ending 23rd April also came in downbeat at 257K levels as against previous (revised) print of 248K. US equities ended in the red yesterday amid downbeat US data (GDP and initial jobless claims). Stocks of Apple led the declines in indices. Key earnings expected from major companies (including Amazon.com) kept the equities tempered. Dow Jones and S&P slipped 1.2% and 0.9% respectively. Asian equities are trading largely in the red, tracking cues from their US peers. Hang Seng (-1.3%), Shanghai Composite (-0.1%) and Kospi (-0.5%) are posting losses. Meanwhile, Australia's ASX (0.4%) is trading higher. Markets in Japan are closed today owing to a holiday. US Treasuries are trading higher today on the back of subdued risk sentiment in US and Asian markets. The 10Y benchmark yields are currently at 1.82% vs. yesterday's close of 1.85%. Global market snapshot Domestic market developments: Indian equities are trading in the green today. Nifty and Sensex are trading 0.3% higher each. Indian Rupee is trading largely flat this morning at 66.51 levels vs. yesterday's close of 66.52. Indian Government bonds are trading steady this morning. The 10Y benchmark yield is currently trading at 7.45% vs. yesterday's close of 7.44%. Regards, ICICI Bank Contact: Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@icicibank.com Radhika Wadhwa (+91-22) 2653-1414 (extn: 7206) radhika.wadhwa@icicibank.com ​

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CA. Rajesh Desai

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