{LONGTERMINVESTORS} Fwd: Morning Market starter- June 27, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Mon, Jun 27, 2016 at 10:54 AM
Subject: Morning Market starter- June 27, 2016
To: stockdesai@gmail.com

Key developments In a historic move, the United Kingdom voted to exit the European Union, with 52% voting in favour of the "leave" side. Central Bank watch: Moody's revised UK's sovereign rating to negative from stable on Saturday. o BoE Governor Mark Carney in an address following the result of the UK referendum remarked that the Central Bank will take additional measures as markets adjust to the outcome, if needed. The Central Bank has also decided to provide additional funding to the tune of GBP 250 bn through its normal facilities. US Federal Reserve issued statement on global financial markets on Friday wherein the Central Bank highlighted that it is "carefully" overseeing effects on global markets following the result of the UK referendum and that global funding pressures may be disadvantageous to the US economy. European Central Bank (ECB) Governing Council member Francois Villeroy said that the decision to leave the EU is "bad news" and that talks around the new agreement must begin at the earliest. o ECB Governing Council member Ewald Nowotny expects more "rational" market reaction to set in from this week. On Euro clearing houses he added that the Central Bank has "no reason to accommodate a country out of the EU". Chart: The Pound Sterling continues to hover around its lowest levels since 1985 Global market developments: Durable goods from the US came in steeply lower in May (preliminary reading) at (-) 2.2% MoM as against prior (revised) print of 3.3% MoM. Further, University of Michigan sentiment also declined, with the reading for June (final print) coming in at 93.5 as against 94.3 earlier. US equities ended in the red on Friday amid downbeat sentiment following results of the British Referendum on Friday. Further, softness in data prints from the US weighed on indices. Dow Jones and S&P slipped steeply by 3.4% and 3.6% respectively. Asian equities are trading largely in the green this morning, Nikkei (2.0%), Shanghai Composite (0.7%) and Australia's ASX (0.6%) are posting gains. Meanwhile, Hang Seng (-0.7%) and Kospi (-0.3%) are trading lower. US Treasuries are trading higher today. Overarching weakness in risk sentiment following Brexit decision is aiding the sovereign bonds in recent sessions. The 10Y benchmark yield is presently at 1.50% as against Friday's close of 1.56%. Global market snapshot Domestic market developments: Indian Rupee is trading stronger vis-à-vis the US Dollar at 67.85 levels vs. the previous close of 67.96. Indian equities are trading ranged this morning. Nifty and Sensex are trading higher by 0.1% each. Government bonds are slightly higher today with the 10Y benchmark yield currently hovering at 7.46% vs. Friday's close of 7.47%. 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.