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FX
QE Index
13763
0.13%
Saudi Arabia (TASI)
9290
-2.77%
UAE (ADX)
4909
-1.09%
UAE (DFM)
4527
-1.64%
TOP NEWS
 West Texas Intermediate and Brent fell for a second day as investors weighed the likelihood
of an output cut by OPEC when the group meets next week amid signs of weakening global
demand. Futures dropped as much as 0.5 percent in New York. Venezuela, a member of the
Organization of Petroleum Exporting Countries, met with Russia to discuss ways to support
falling oil prices, according to the Latin American nation. A large output cut by OPEC isn’t in
the group’s interest because it’s likely to bolster U.S. shale production, according to Goldman
 Sachs Group Inc. Oil has slumped into a bear market as U.S. output surges to the highest level
in more than three decades, adding to concern the global market is oversupplied amid signs
that demand is weakening. Japan, the world’s third-largest oil consuming country,
unexpectedly slipped into a recession after its economy shrank in the third quarter.
 U.S. stocks were little changed, with the Standard & Poor’s Index 500 Index at an all-time
high, as a slump in small-cap shares and concern over Japan’s recession offset corporate
deals. Treasury yields were one basis point away from a seven-week high relative to their
Group of Seven peers, bolstering speculation the premium will lure investors to America’s
debt. U.S. government securities due in a decade and more have returned 19 percent this
year, the best performance in dollar terms among 144 bond indexes around the world tracked
by Bloomberg and the European Federation of Financial Analysts Societies. The Treasury is
scheduled to report today on overseas holdings of U.S. securities for September, after foreign
ownership of the nation’s debt climbed to a record in August.
 Beijing home prices fell for the first time in almost two years as China’s property slowdown
deepened, prompting developers to offer discounts to cut inventories. New-home prices
dropped in October in 67 cities of 70 tracked by the government from a year earlier, and in 69
from September, the National Bureau of Statistics said today. Prices in Beijing declined 1.3
percent, the first annual decrease since November 2012 and a reversal from the 14.7 percent
jump in January from the previous year.
 Amid criticism over the lack of uniformity in approaches to risk at European banks, the Bank
for International Settlements has urged emerging markets to only move to the internal
ratings-based approach for some risk-weighted assets when ready. The IRB method can allow
lower implicit risk weights, given the use of models, pressuring supervisors to approve such
practices, BIS said, creating arbitrary cushions against expected and unexpected losses, as
well as weakening consistency.
 Saudi Arabia, the United Arab Emirates and Bahrain agreed to send their ambassadors back to
Qatar, resolving an unprecedented diplomatic spat in the history of the oil-rich Gulf
Cooperation Council. GCC leaders announced the decision to “consolidate the spirit” of
cooperation after an emergency meeting in Riyadh yesterday, according to a statement
carried by the official Saudi Press Agency.
Kuwait (KSE)
7054
-0.76%

Oman (MSM)
7030
-0.22%
The gauge bucked the sluggish trend in the region and the world after Japan said its GDP
Bahrain (BAX)
1451
0.24%
shrank for the second quarter straight. But news from the UAE, Saudi Arabia and Bahrain that
FX Rates (Mid)
USD
QAR
USD
-
3.64
EUR
1.247
4.543
JPY
116.56
0.031
GBP
1.565
5.701
CHF
0.963
3.781
AUD
0.872
3.177
INR
61.84
0.059
TRY
2.231
1.632
ZAR
11.11
0.328
BRL
2.609
1.396
QIBOR RATES
Duration
QIBOR
Duration
QIBOR
Overnight
0.80
3 Months
1.06
1 Week
0.85
6 Months
1.24
1 Month
0.90
9 Months
1.35
2 Months
0.99
1 Year
1.45
US RATES
US Rates
Treasuries
Libor
Swaps
3M
0.02
0.23
-
6M
0.07
0.33
-
5Y
1.61
-
1.75
10Y
2.32
-
2.45
Index Level
1 Day
%
GLOBAL MARKETS
Indices
GCC
Qatar’s QE 20 Index added 0.13 per cent to reach 13,762.76 points on Monday, November 17.
they would re-instate their ambassadors in Doha after they withdrew them in March raised
GLOBAL
the mood. Qatar National Bank advanced 0.90 per cent to hit QAR228. The Investors lost the
Dow Jones
17648
0.07%
S&P 500
2041
0.07%
Nasdaq
4671
-0.37%
FX COMMENTARY
FTSE
6672
0.26%
Euro Stoxx 50
3085
0.81%
Nikkei
17249
1.62%
Hang Seng
23620
-0.75%
The Dollar held its own after European Central Bank officials raised the prospects of further stimulus
steps and as investors waited to see if Japan's leader would call a snap election after the country
unexpectedly slipped into recession. ECB President Mario Draghi said on Monday that the central bank
is ready to take more steps to support the Euro Zone's recovery. Earlier in the day, ECB Executive Board
member Yves Mersch detailed what such steps might include, and said the ECB could theoretically buy
gold, shares, exchange traded funds (ETFs) or other assets if needed. The Euro was steady on the day at
$1.2450, down from a more than two-week peak of $1.2580 hit overnight. The Dollar index, rose to
87.999, pushing closer to a four-year high of 88.267 set on Friday. The Dollar was steady on the day at
116.68 Yen, within sight of its seven-year peak of 117.06 Yen touched Monday after Japan's downbeat
gross domestic product data. Japan's economy contracted an annualised 1.6 percent in July-September,
after plunging 7.3 percent in the second quarter following a rise in the national sales tax, which hit
consumer spending hard. The technical recession sets the stage for Prime Minister Shinzo Abe to delay an
unpopular further hike to the sales tax and call a snap election. The Australian and New Zealand Dollars
edged up, as the outlook for sustained monetary policy support from the European Central Bank and
Bank of Japan favoured carry trades. The Aussie received some support after Australia and India said
they will push for a free trade pact. The news came a day after the finalisation of a trade agreement
between China and Australia. Also underpinning the currency was the outlook for aggressive stimulus in
Japan and in Europe, which should encourage investors there to seek higher yields offshore. This spurs
carry trades where investors borrow in economies with low rates and use the proceeds to buy financial
assets where rates are higher. Likewise, the New Zealand Dollar nudged up to $0.7931, from $0.7914 in
early trade. It peaked on Monday following better-than-expected retail sales data.
Nifty India
8439
0.09%
Borsa Istanbul
80500
-0.88%
Crude Oil
75.31
-0.44%
Natural Gas
4.29
-1.13%
1187
0.02%
COMMODITIES
Gold
US ECONOMIC DATA
Time
16:30
18:00
Event
PPI Final Demand
MoM
NAHB Housing
Market Index
Period
Survey
Oct
-0.10%
Prior
0.10%
Nov
55
54
most, ending off 2.70 per cent at QAR46.70.
Tuesday, November 18, 2014
REGIONAL STOCK MARKETS % CHG
Yesterday
1.00
Year to Date
EGYPT
DUBAI
DOHA
BAHRAIN
ABU DHABI
SAUDI
MUSCAT
JORDAN
LEBANON
KUWAIT
0.50
(0.50)
(1.00)
(1.50)
(2.00)
(2.50)
(10.00)
(3.00)
-
10.00
20.00
30.00
40.00
QSOV. USD YIELD CURVE
Yield %
Today
01/01/2014
200
5.0
150
4.0
100
3.0
50
2.0
-
1.0
(50)
0.0
-1.0
Spread bps
Spread to Bench
6.0
(100)
QATAR 4
01/20/15
QATAR 3
QATAR
QATAR
QATAR 5 QATDIA 5 QATAR 4
QATAR
QATAR 9 QATAR 6.4 QATAR 5
1/8
2.099
6.55
1/4
07/21/20
1/2
3.241
3/4
01/20/40
3/4
01/20/17 01/18/18 04/09/19 01/20/20
01/20/22 01/18/23 06/15/30
01/20/42
Sukuk
Sukuk
(150)
CHART OF THE DAY
Indian investors are so confident in Prime Minister Narendra Modi’s plans to boost growth that two- thirds of record equity fund offerings will be
locked for at least three years. The CHART OF THE DAY shows 53 equity funds started up this year, according to the Association of Mutual Funds of
India. The portion in so-called closed-ended funds rose to 66 percent, the most since at least 2000. The funds bind assets for a minimum three
years. “India is in the throes of a multi-year bull run and the best way to capitalize on that is to stay invested,” Sunil Subramaniam, deputy chief
executive officer at Sundaram Asset Management Co., said in an interview in Mumbai on Nov. 12. “Most of the investment ideas tied to economic
fundamentals will come to fruition in five years.” India’s S&P BSE Sensex has rallied 32 percent to a record this year, the best-performing equity
gauge among the world’s 30 biggest markets. The nation’s shares sank in the 12 months after new fund sales last approached current levels in
2007. This time, investors are betting things will be different as Modi takes steps to open the economy to overseas investors and cut bureaucracy
after winning the biggest election mandate in three decades. Higher commissions paid by asset management companies to brokers for selling
closed-ended funds have also contributed to their popularity, according to New Delhi-based Value Research India Pvt., which tracks mutual funds.
Domestic investors have poured a net 392 billion rupees ($6.4 billion) into equities since the fiscal year that started April 1, compared with an
outflow of 85.8 billion rupees in the same period last year. Foreigners have plowed $15.1 billion into local shares this year, the most among eight
markets tracked by Bloomberg in Asia.
Disclaimer: It is understood that any opinions expressed by CBQ or its affiliates as to the commentary, market information, and future direction of prices of specific securities reflects the views of the individual analyst who issued them, and not necessarily represent
the views of CBQ or its affiliates in any way. In no event shall CBQ or its affiliates have any liability for any direct or indirect losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this
materials or for any delays, inaccuracies, errors in, or omissions of the said information
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Email: [email protected]
Tuesday, November 18, 2014