{LONGTERMINVESTORS} Fwd: Morning Market Starter - September 6, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Tue, Sep 6, 2016 at 11:45 AM
Subject: Morning Market Starter - September 6, 2016
To: stockdesai@gmail.com

On the radar: Markets await Eurozone's Q2 2016 GDP (final) reading, due later today. Key developments today: Reserve Bank of Australia (RBA) maintained status-quo at its monetary policy meeting today, keeping policy rate unchanged at 1.5%. Leaders of the world's 20 largest economies gathered at the 11th G20 Summit in Hangzhou, China over the weekend. Key issues addressed were around declining global growth and the rise of populist political entities backlashing against globalisation across the world. o An elaborate 15-page report was issued by Japan on the consequences of Brexit, citing concerns for companies attracted to the UK on the promise of access to the EU single market. o In her first G20 summit, UK PM Theresa May urged the leaders to not let Brexit "make matters worse". Central Bank watch: Richmond Fed President Jeffrey Lacker said that the August jobs report was a "reasonably strong" one and was "perfectly close enough to expectations". He also said that there are risks associated with waiting longer on hiking interest rates. European Central Bank (ECB) Executive Board member Yves Mersch said that the pace of recovery in the Euro-area remains satisfactory, though unemployment continues to remain high. Bank of Japan Governor Haruhiko Kuroda said that cutting the present level of monetary accommodation will not be considered and that the Central Bank still has enough room to expand policy further, if needed. Chart: US nonfarm payrolls in August came in below market expectations, adding only 151K jobs Global market developments: Macroeconomic data: o US: Nonfarm payrolls for the month of August came in lower at 151K from the earlier (revised) print of 275K. Unemployment rate, meanwhile, remained unchanged at 4.9%. On the other hand, trade deficit improved slightly in July, coming in at USD 39.5 bn from the previous (revised) print of USD 44.7 bn. o AU: AiG performance of services index slipped into the contractionary zone (below 50 levels) in August, with the reading at 45.0, steeply lower from the previous reading of 53.9. o JN: Services PMI for August came in the contractionary territory, coming in at 49.6 (prior print: 50.4). o UK: Services PMI in August returned to the expansionary zone, coming in at 52.9 from 47.4 previously. US markets were closed yesterday on account of a holiday. Asian equities are trading largely in the green. Gains in crude prices and dampened market wide bets of an immediate rate by the Fed amid weaker than expected US jobs data are aiding most Asian stocks this morning. Nikkei (+0.2%), Hang Seng (+0.3%), Kospi (+0.2%) are trading higher. Meanwhile, Shanghai Composite (-0.1%) and Australia's ASX (-0.2%) are trading lower. Steep decline in Australia's AiG performance of services index is weighing on the indices. US Treasuries are trading little changed today. The 10Y benchmark yield is presently trading at 1.61% vs. the previous close of 1.60%. Global market snapshot Domestic market developments: Services PMI in August improved, coming in at 54.7 from 51.9 previously. Regards, ICICI Bank Contact: Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@icicibank.com Kamalika Das (+91-22) 2653-1414 (extn: 6280) kamalika.das@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.