{LONGTERMINVESTORS} Fwd: Morning Market Starter - November 17, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Thu, Nov 17, 2016 at 10:47 AM
Subject: Morning Market Starter - November 17, 2016
To: stockdesai@gmail.com

On the radar: Fed Chair Janet Yellen's testimony to Joint Economic Committee due today will be watched for cues. Further, markets will closely track US CPI data for October due later today.   Central Bank Watch: Bank of Japan announced its first operations to purchase bonds under new policy regime to stem the sharp rise in yields o Governor Haruhiko Kuroda had said in the September policy that the bank would hold unlimited purchases as needed, setting a fixed rate, in order to control yields. o Ten-year sovereign yields turned positive this week for the first time since September. US Fed official James Bullard said yesterday that December would be a "reasonable time" to raise interest rates. Chart: Bank of Japan announced its first operations to purchase bonds under new policy regime Source: Bloomberg, ICICI Bank Research Global market developments:  Macroeconomic data o US: Industrial production came in at 0.0% MoM in October vs. prior revised print of (-) 0.2% MoM. o UK: Unemployment rate edged down to 4.8% in September from 4.9% previously. US equities closed in the red yesterday as investors assessed the possible outcomes of President-elect Trump's policy plans. Dow Jones and S&P 500 ended down 0.3% and 0.2% respectively. Asian stocks are trading largely in the red this morning, tracking cues from US markets. Markets have swung between gains and losses recently as participants gauge Donald Trump's policy plans. Shanghai Composite, Nikkei and Kospi are down 0.2%, 0.1% and 0.1% respectively. Meanwhile, Australia's ASX and Hang Seng are up 0.2% and 0.1% respectively. US Treasuries are trading in a narrow band this morning. Increasing expectation of a December Fed rate move and higher inflation prospects in the US (stemming from President-elect Trump's policies) have pushed yields up recently. Going ahead, markets will closely watch Fed Chair Yellen's testimony to Joint Economic Committee due today for cues. Further, a slew of data (CPI, housing starts and initial jobless claims) are due later today. The 10Y benchmark yield is currently at 2.20%, vs. yesterday's close of 2.22%.   Global market snapshot Domestic market developments: Indian Rupee is trading stronger against the Dollar at 67.89 levels (prior: 67.95). Indian Government bonds are trading slightly higher this morning, with the 10Y benchmark hovering at 6.43% levels. Regards, ICICI Bank Contact: Kamalika Das (+91-22) 2653-1414 (extn: 6280) kamalika.das@icicibank.com Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@icicibank.com Sumedha Dasgupta (+91-22) 2653-1414 (extn: 7243) sumedha.dasgupta@icicibank.com ​

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CA. Rajesh Desai

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