{LONGTERMINVESTORS} Fwd: Morning Market Starter: August 5, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Fri, Aug 5, 2016 at 11:05 AM
Subject: Morning Market Starter: August 5, 2016
To: stockdesai@gmail.com

On the radar: Markets keenly await US nonfarm payrolls data for the month of July, due later today. Central Bank watch: In its monetary policy decision yesterday, Bank of England (BoE) cut key interest rate by 25 bps to 0.25%, its first cut since March, 2009. BoE's asset purchase programme of Government bonds was expanded by GBP 60 bn to GBP 435 bn. Additional purchase of corporate bond of upto GBP 10 bn was also announced. o BoE Governor Mark Carney said that structural problems are the biggest issue facing the UK economy. Philadelphia Fed President Patrick Harker (non-voting member) commented that a "slightly more aggressive" stance will be needed if inflation picks up and financial headwinds diminish. o Minneapolis Fed President Neel Kashkari said that he does not see "much inflationary pressure" when looking at the incoming data prints. He also added that the Central Bank has the "luxury of time" in hiking rates. In the latest Economic Bulletin published by the European Central Bank yesterday, it was highlighted that initial data prints for Q2 2016 are pointing towards softer global growth and trade activities. However, owing to the resilience of the Euro-area economy, recovery is expected to proceed at a normal pace. It was also added that the ECB will deploy all available instruments to aid the economy. o European Central Bank Governing Council member Jens Weidmann commented that there is still room to adjust ECB's QE targets. He further said that while ECB's economic outlook may have been tempered owing to Brexit decision, it is expected to continue on its upward trajectory. Chart : US initial jobless claims came in higher for the week ended July 30th at 269K (prior print: 266K) Global market developments: US initial jobless claims for the week ended July 30th came in higher at 269K as against the previous print of 266K. Meanwhile, durable goods orders for the month of June (final print) came in at (-) 3.9% MoM from the earlier print of (-) 4.0% MoM. US markets ended flat yesterday. Caution regarding the crucial NFP data prints, due later today, kept the indices trading in a tight range. Asian equities are trading largely in the green this morning. Asian markets are largely tracking the upbeat global sentiment as BoE announced a package of easing measures yesterday. Nikkei (0.2%), Hang Seng (1.5%), Kospi (0.8%) and Australia's ASX (0.4%) are posting gains. Meanwhile, Shanghai Composite (-0.1%) is trading slightly lower. US Treasuries are trading higher this morning amid caution ahead of the crucial NFP data prints, due today. The 10Y benchmark yield is currently trading at 1.50%, same as its previous close. Global market snapshot Domestic market developments: Indian Rupee is trading stronger vis-à-vis the US Dollar at 66.83 levels vs yesterday's close of 66.91. Indian equities are trading in the green this morning with Nifty and Sensex up by 0.9% each. Indian Government bonds are trading higher with the 10Y benchmark yield at 7.15%, vs. the previous close of 7.17%. Regards, ICICI Bank Contact: Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@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.