GLOBAL MARKETS VIEW FOR 7 JULY 2016

Global Market Updates
07th July 2016

1. America
• US stocks rose as the Federal Reserve was seen refraining from raising US interest rates soon, even as economic data showed the world's largest economy regained speed in the second quarter.
•U.S. benchmark and long-dated Treasury yields finished slightly higher on profit after hitting record lows during the session on global growth concerns stemming from Britain's recent vote to exit from the European Union.

2. Europe
• Strong demand from euro zone countries for German industrial goods helped to cushion a drop in domestic orders in May, but the overall lackluster data suggested that growth in Europe's largest economy would slow in the second quarter.
•European Union finance ministers will issue a statement at their meeting next week urging bank regulators to avoid imposing a disproportionate increase of costs on European banks, draft conclusions of the meeting said.

3. Asia
• Japan’s battle with deflation is not expected to end anytime soon, Bank of Japan Governor Haruhiko Kuroda told a conference of branch managers in Tokyo.
•China's state-owned banks face severe bad asset pressure. Risks over China's banks NPLs will continue to rise in the near term.

4.Currencies
•The Indian rupee opened marginally higher at 67.46/$ against US Dollar as against the previous close of 67.45/$.
•The safe-haven yen rose, while sterling plummeted to a 31-year low on mounting worries about the broader impact that Britain's vote to leave the European Union would have on the global economy. Against the yen, the dollar was down 0.40 pct at 101.29 yen. Sterling was last down 0.72 pct against the greenback at $1.2928. The euro gained 0.21 pct against the greenback to $1.1098.

5. Commodities
• Oil prices rose in early trading , supported by a report of another fall in U.S. crude inventories as well as a weaker dollar, although a glut of refined products and economic growth concerns continue to weigh on markets.
•Spot gold, which touched its highest since March 2014 at $1,374.91, was trading up 0.4 percent at $1,368.80 an ounce by 0050 GMT.

Global Market Updates
05th July 2016

1. America
•The 10-year Treasury note rose for a third day ahead of a U.S. jobs report that will offer clues as to the direction of the Federal Reserve’s next interest-rate move.
•The U.S. dollar index, which tracks the greenback against a basket of six rival currencies, edged down slightly to 95.626.

2. Europe
•A European Union exit could cut Britain's gross domestic product by anywhere between 1.5 and 4.5 percentage points by 2019, IMF chief Christine Lagarde said.
•The number of businesses pessimistic about the UK economy over the next twelve months jumped to 49 percent in the week following the referendum from 25 percent before the vote outcome, according to a survey.

3. Asia
•Activity in China's services sector rose to an 11-month high in June, The Caixin/Markit services PMI for June rose to 52.7 from 51.2 in May on a seasonally adjusted basis. Readings above 50 indicate an expansion on a monthly basis, while readings below signal contraction.
•Japan Nikkei Services PMI (June) +49.4 (prior +50.4), Composite 49.0 (previous +49.2). New business fell the fastest in almost five years, from 50.4 previously to 47.3 .
Services below 50 for the first time in two months.

4.Currencies
•The Indian rupee opened lower by 6 paise at 67.32/$ against US Dollar as against the previous close of 67.32/$.
•The dollar was down 0.4 percent at 102.09 yen, while the euro fell 0.7 percent to 113.63 yen.

5. Commodities
• Spot gold was up 0.1 percent at $1,351.49 an ounce by 0052 GMT. The precious metal touched a peak of $1,357.60 an ounce in previous session, less than $1 below last month's high.
•Crude prices dipped in early trading , with Brent falling back below $50 per barrel as economic concerns took center stage with many analysts saying oil demand will stall later this year.