{LONGTERMINVESTORS} Fwd: Daily Market Report- June 2, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Thu, Jun 2, 2016 at 6:47 PM
Subject: Daily Market Report- June 2, 2016
To: stockdesai@gmail.com

Key developments today The European Central Bank (ECB) maintained status quo in its monetary policy decision today. ECB announced the start of its corporate sector purchase program (CSPP) and targeted long-term refinancing operations (TLTROs) from June 8th and June 22nd respectively. Domestic market developments Indian equities ended in the green today, tracking upbeat cues from their European peers. Gains were led by stocks of banking and metal companies. Going ahead, RBI's monetary policy decision, due next week, will take centre stage. Sensex and Nifty hovered at seven-month highs and each ended 0.5% higher. Indian Rupee ended stronger vis-à-vis the US Dollar at 67.29 levels as against the prior close of 67.45. Upbeat finish in local bourses and softness in the greenback ahead of crucial jobs data prints supported the domestic currency today. Indian Government bonds ended flat, erasing early morning gains, ahead of the government's INR 150 bn rupee debt sale tomorrow. The 10Y benchmark yield closed at 7.49%, same as yesterday's close. RBI provided liquidity to the tune of INR 478.17 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of June 1st. It injected INR 24.35 bn and INR 0.75 bn under Special Refinance Facility and Marginal Standing Facility respectively. Global market snapshot *Weighted average of the day Global market developments Asian equities ended mixed today, mirroring its early morning trend. Japanese shares tumbled as the government delayed the sales tax hike. Appreciation of the Yen also weighed on stocks. Nikkei (-2.3%) and Australia's ASX (-0.9%) posted losses. Meanwhile, Hang Seng (0.5%), Shanghai composite (0.4%) and Kospi (0.1%) ended marginally higher. The Dollar index is trading weaker at 95.32 levels, extending overnight losses, ahead of crucial US labour market data, due tomorrow. ADP employment change data, came in higher at 173K in May vs. prior (revised) print of 166K. The Pound is trading stronger vis-à-vis the US Dollar, amid weakness in the latter. The Euro is trading flat relative to the greenback today as the European Central Bank maintained status quo in its monetary policy meeting today. The Japanese Yen is trading with an appreciation bias, hovering around 2-week highs. Comments from a Bank of Japan (BoJ) official, opposing the deepening of negative interest rates, aided the currency. US Treasuries are trading little changed today ahead of crucial nonfarm payrolls data from the US due tomorrow. The 10Y benchmark yield is currently at 1.83% vs. yesterday's close of 1.84%. Commodity market developments Oil is trading slightly higher today, though recent losses remain predominant, as the OPEC bi-annual meeting in Vienna is underway. Saudi Energy Minister Khalid al-Falihsaid that the country is not currently increasing production capacity, but would not rule it out.Meanwhile, Iranian Oil Minister Bijan Zanganehstated that an output ceiling doesn't benefit Iran. Member countries are not expected to agree on any freeze decision, but markets will keenly eye the press conference, to be held later today, for further cues. WTI and Brent are trading at USD 49/bbl and USD 49.8/bbl respectively. Gold is trading slightly higher today amid weakness in the US Dollar. Going forward, the bullion is expected to track movements in the greenback in the run up to the June 14th -15th FOMC meeting. 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 ​

--

CA. Rajesh Desai

--
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.