Daily Market Report 13th Nov 2014 GLOBAL MARKET INSIGHT USD: The dollar rose more modestly against major currencies as traders awaited US data due today and tomorrow that may bolster wide assessments that America’s economic prospects are better than Europe’s and Japan’s. EUR: The euro was flat at $ 1.2442, confined to a narrow range and managing to stay clear of a two year low of $ 1.2358 hit last week. GBP: Sterling slumped back under $1.58 on Wednesday after the Bank of England said inflation was likely to fall further, pushing back bets on the first post crisis interest rate hike to the end of 2015. JPY: The dollar was little changed at 115.56, after its advance to a seven year peak of 116.11 was checked on the previous day. The yen stabilized somewhat after Japan’s top government spokesman Yoshihide Suga cooled speculation that Prime Minister Abe will hold a snap election in December. ZAR: South Africa’s rand edged weaker against the dollar ahead of a retail sales report on Wednesday, giving up the slight gains it made in the previous session after manufacturing output beat market expectations. INR: India's economic outlook brightened on Wednesday with a surprise pickup in industrial output and further cooling in consumer prices. Retail inflation, which the Reserve Bank of India (RBI) tracks in setting lending rates, slowed to 5.52 percent in October from a multi-year low of 6.46 percent a month earlier, helped by slower annual rises in food and fuel prices. Industrial output unexpectedly grew 2.5 percent year on year in September, its fastest pace in three months, helped by a rebound in the capital goods sector, separate government data showed. A rate cut at this juncture will no doubt add to the existing positive growth impulses. OVERVIEW OF MAURITIAN MARKET Cut off for the five-year Government of Mauritius Bond for a nominal amount of MUR 1.3 Billion was at 3.70%. Moreover, tomorrow the Bank of Mauritius is issuing 364-Days Government of Mauritius Treasury Bills for a nominal amount of MUR 700 Million. Data Yesterday Data watch today Actual Forecast Preview EURO ZONE INDUSTRIAL PRODUCTION (YOY) (SEP) 0.6% -0.2% -0.5% GBP JOBLESS CLAIMS CHANGE (OCT) -20.4k USD WHOLESALE INVENTORIES (SEP) 0.3% Data BOND BUZZ AND MONEY MARKET Treasuries are giving back early gains after a government’s auction of $24bln in 10-year debt drew tepid demand. The bid-to-cover ratio was 2.52, matching the lowest level since August 2013. The notes yielded 2.365%, the least since June 2013. The two-year note yield is adding 0.4bps to 0.539%. The 10-year bond yield is up 0.4bps to 2.364%. -20.0k 0.2% -18.4k 0.6% Data Forecast preview Importance EUR GERMAN CONSUMER PRICE INDEX (YOY) (OCT) 0.8% USD INITIAL JOBLESS CLAIMS (NOV) 280K 278K MEDIUM CAD NEW HOUSING PRICE INDEX 1.7% 1.5% MEDIUM 0.8% MEDIUM Market Levels Currency Latest EUR/USD 1.2443 GBP/USD 1.5777 USD/ZAR 11.2180 USD/JPY 115.61 USD/INR 61.39 USD/MGA 2720 Currency Latest USD/MUR 31.963 EUR/MUR 39.678 GBP/MUR 50.54 ZAR/MUR 2.88 INR/MUR 0.5226 MGA/MUR 1.24 EQUITY TODAY DJIA 17612.2 NASDAQ 4675.135 FTSE100 6611.04 NIKKEI1225 17255.5 SEMDEX 2106.76 BRENT 80.01 GOLD 1161.4 SILVER 15.61 Change Change - Change INTEREST RATES LIBOR RATES FED 0.25% ECB 0.05% BOM REPO 4.65% RBI REPO 8.0% BCM REPO 9.5% Trading Idea for the Day Buy USDCAD at 1.1290, Target: 1.1440, Stop: 1.1250 3M 6M USD 0.23320 0.32600 EUR 0.05429 0.14643 GBP 0.55650 0.69125 International Bond: IDBI Bank 5.5 Year USD Bond maturing on 23 April 2020 is trading at 100.70 with Fixed YTM of 4.00 % per annum. Coupon for the Bond is 5.00 % p.a. payable Half Yearly. IDBI Bank is a Public Sector Bank in India with large number of branches and major equity held by Government of India. Light Crude: CMP $77.9400 Crude continue to trade within tight range since last seven sessions. On the downside level of $75.70 is support whereas resistance at $80.30 level. Breaking of any of the level will set the further path. Disclaimer: This report has been prepared by members of the Financial Markets Division of the SBM Bank (Mauritius) Ltd, who are not considered as research analysts and information contained therein should not be considered as “research” as that term is defined by applicable regulations. Information has been collected from sources believed to be reliable and in good faith by the bank, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. The information may include opinions, estimates, indicative rates, terms, price quotations and projections which reflect existing market conditions and are subject to change, modification or amendment without any prior notice and may vary from views expressed by other members and reports of the bank or any other institution. The analysis and data compilations contained therein are based on numerous assumptions; different assumptions could result in materially different opinions. Contact Us: PV RAO (+230 202 1353) P.BHATTACHARYA R.SOOBROYDOO (+230 202 1507) (+230 202 1633) Or Reach us at [email protected]