Morning Market Starter- February 11, 2014

[Rajesh Desai]

 

Central Bank Watch: Fed Chairperson Janet Yellen is scheduled to give her first testimony to the US Congress today. Global Market Developments: US benchmark equity indices ended slightly higher yesterday, aided by gains in pharma and technology stocks. With the corporate earnings season coming to an end, focus is likely to shift back to macroeconomic data releases. Janet Yellen's testimony to the Congress today will be closely watched. Asian stocks are trading in the green today morning, tracking gains in US equities. Shanghai Composite is up 0.50% amid upbeat sentiment following yesterday's slew of sector-specific policy announcements. Kospi and Hang Seng are also up by 0.5% and 1.0% respectively. Australia's ASX is higher by 0.7% following the positive business confidence print released earlier this morning. Meanwhile, markets in Japan are closed for trade today. US Treasuries are not trading this morning on account of a market holiday in Japan. Meanwhile, in yesterday's trade, the 10-year yield had fallen by 2 bps to close at 2.67%. Domestic Market Developments: India's merchandise trade data for January, due later today, will be closely watched. We expect the January trade deficit reading at around USD 10.5 bn. Markets await automobile sales data for January, due to be released later today by SIAM (Society of Indian Automobile Manufacturers). Indian equities are trading higher this morning tracking positive global cues. Rupee is trading slightly stronger around 62.40 levels vs. prior close of 62.44 amid broad-based gains in EM currency peers. Please find detailed currency views in the attached document. Regards, ICICI Bank Contact: Sunandan Chaudhuri (+91-22) 4008-7525

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CA. Rajesh Desai