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Global
market developments:
o US: The final reading for manufacturing PMI edged up to a 21-month high 54.3 in December, surpassing market expectations. The rise was mostly driven by a stronger rate of employment growth and inventory building, which more than offset slightly weaker increases in output and new orders.
ISM
manufacturing also rose to 54.7 in December from 53.2 in the previous
month, and beat estimates. 11 of the 18 industries surveyed reported
growth, led by petroleum and coal products, primary metals, miscellaneous
manufacturing, and food, beverage and tobacco products.
- US equities
ended in the green yesterday, resuming trading post New Year holiday.
On the first trading day of the New Year, robust economic data from China
and Europe propped up the indices. Telecommunication stocks and financial
shares led the gains. Dow Jones was up by ~0.6%, while S&P 500 was up
by ~0.8%.
- Asian
stocks are trading in the green this morning, tracking cues from western markets.
Nikkei (2.2%; supported by a weaker Yen and better-than-expected
manufacturing data from Japan), Australia ASX (0.1%) and Shanghai Composite
(0.1%) are trading in the green, while Hang Seng and Kospi are trading
nearly flat this morning.
- US
Treasuries are trading lower this morning. Yesterday, Treasuries remained
volatile, with yields surging to 2.51%, before correcting to 2.44%. The 10Y
benchmark yield is currently trading at 2.47%, vs. yesterday’s close of
2.44%.
Chart: US ISM manufacturing index rose for the fourth month to 54.7
in December from 53.2 in November
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Domestic market
developments:
- Two-day GST
Council meet concludes today.
o Yesterday, the states drew a hard bargain, demanding extra compensation to offset tax revenue losses in the wake of demonetization. Fresh roadblocks also emerged on productsmoving in high seas, with coastal states demanding taxation rights over goods transported within 12 nautical miles oftheir respective geographical territories.
Global market
snapshot
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