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

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Fri, Jul 29, 2016 at 11:32 AM
Subject: Morning Market Starter - July 29, 2016
To: stockdesai@gmail.com

Key developments today: Bank of Japan (BoJ) eased monetary policy in its policy decision today, increasing the ETF purchase target from JPY 3.3 tn to JPY 6 tn. However, interest rates remained unchanged at (-) 0.1%. On the radar: Eurozone's July inflation and Q2 2016 GDP (advance estimate), US Q2 2016 GDP (advance reading) and India's June fiscal deficit data prints, expected later today, will also be closely tracked. Furthermore, European Banking Authority (EBA) stress test results for European Banks, also due later today, will remain crucial. Central Bank watch: European Central Bank (ECB) Executive Board member Benoit Coeure said that the central bank still has room to lower interest rates before they start having an adverse impact on the economy and consumer behavior. He added that the ECB is aware of the risks of low interest rates on bank profitability, but insisted that the economic lower bound is "safely" below the current deposit rate of (-) 0.4%. Chart : Japan's industrial production in June grew at 1.9% MoM as against a contraction of 2.6% MoM previously Global market developments: Macroeconomic data: o UK: Nationwide house prices for July rose to 0.5% MoM (prior print: 0.2% MoM). GfK consumer confidence in July came in sharply lower at (-) 12.0 as against the previous print of (-) 1.0. o EZ: Consumer confidence in July (final reading) came in unchanged at (-) 7.9. o US: Initial jobless claims for the week ended 23rd July increased to 266K as compared to the prior (revised) print of 252K. o JN: Headline inflation in June came in unchanged at 0.4% YoY. Industrial production in June (preliminary print) entered the expansionary territory, growing at 1.9% MoM vs. the prior print of (-) 2.6% MoM. Retails sales for the same month grew at 0.2% MoM vs. a flat reading previously. US markets ended mixed yesterday ahead of crucial GDP data prints and the BoJ policy decision slated for today. Dow Jones closed 0.1% lower while S&P ended 0.2% higher. Asian equities are trading in the red this morning, as the BoJ fell short of market expectations in its policy decision today. Nikkei (-1.1%), Hang Seng (-0.8%), Kospi (-0.1%), Shanghai Composite (-0.1%) and Australia's ASX (-0.3%) are posting losses. US Treasuries are trading lower this morning. The 10Y benchmark yield is currently trading at 1.52% vs. the previous close of 1.50%. Global market snapshot Domestic market developments: Indian Rupee is trading slightly weaker vis-à-vis the US Dollar, at 67.07 levels as against yesterday's close of 67.03. Indian equities are trading in the red this morning. Sensex and Nifty are trading lower by 0.2% and 0.1% respectively. Indian Government bonds are trading higher today. The 10Y benchmark yield is currently at 7.17%, vs. the previous close of 7.19%. Regards, ICICI Bank Contact: Kamalika Das (+91-22) 2653-1414 (extn: 6280) kamalika.das@icicibank.com Samir Tripathi (+91-22) 2653-7233 samir.tripathi@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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