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FX
FX Rates (Mid)
USD
QAR
USD
-
3.64
EUR
1.220
4.442
JPY
120.23
0.030
GBP
1.558
5.675
CHF
0.986
3.693
AUD
0.814
2.964
INR
63.65
0.057
TRY
2.321
1.569
ZAR
11.59
0.314
BRL
2.669
1.365
QIBOR RATES
Duration
QIBOR
Duration
QIBOR
Overnight
0.80
3 Months
1.06
1 Week
0.85
6 Months
1.22
1 Month
0.90
9 Months
1.33
2 Months
0.99
1 Year
1.44
US RATES
US Rates
Treasuries
Libor
Swaps
3M
0.00
0.26
-
6M
0.10
0.36
-
5Y
1.76
-
1.85
10Y
2.24
-
2.36
Index Level
1 Day
%
QE Index
12631
1.46%
Saudi Arabia (TASI)
8856
1.22%
UAE (ADX)
4596
1.31%
UAE (DFM)
3987
2.58%
Kuwait (KSE)
6679
1.54%
Oman (MSM)
6436
0.04%
Bahrain (BAX)
1415
0.10%
Dow Jones
18054
0.13%
S&P 500
2089
0.33%
Nasdaq
4807
0.70%
FTSE
6610
0.18%
Euro Stoxx 50
3185
-0.24%
Nikkei
17667
-0.85%
Hang Seng
23787
1.87%
Nifty India
8262
0.75%
Borsa Istanbul
84947
0.14%
Crude Oil
55.42
1.26%
Natural Gas
3.05
1.33%
1196
0.03%
GLOBAL MARKETS
Indices
GCC
GLOBAL
COMMODITIES
Gold
US ECONOMIC DATA
Time
Event
Dallas Fed Manf.
18:30 Activity
Period
Survey
Prior
Dec
9
10.5
TOP NEWS
 Asian stocks rose to the highest level in almost three weeks, buoyed by share gains in the U.S.
and new bank rules in China that will help spur lending. The euro traded near a two-year low
while oil advanced. Global equities are headed for their third straight annual advance, with
U.S. shares driving gains the past two weeks after the Federal Reserve said it would exercise
patience in raising interest rates. New regulations in China will give banks greater scope to
lend by lowering loan-to-deposit ratios. Greece’s prime minister has a final opportunity today
to have his presidential candidate confirmed and avoid an early election that would put an
international bailout at risk.
 China’s Shanghai Composite Index climbed to the highest level since January 2010 and Hong
Kong shares jumped the most in a year amid speculation that government steps to spur
lending will bolster economic growth.
 Oil advanced for the first time in three days amid speculation that an escalating conflict in
Libya will help ease a global supply surplus that’s driven crude into a bear market.
 Shares in Dubai rose to the highest level in more than two weeks following a record close for
U.S. stocks last week. Qatari shares also advanced. The DFM General Index climbed 2.6
percent to close at 3,987.14, the highest since Dec. 8. Qatar’s QE Index gained 1.5 percent and
Abu Dhabi’s ADX General Index added 1.3 percent. Saudi Arabia’s Tadawul All Share Index
advanced 1.2 percent in Riyadh, taking its gain since reaching an 18-month low on Dec. 16 to
21 percent. Data last week showed the world’s largest economy grew at the fastest pace since
2003 in the third quarter, spurring the Standard & Poor’s 500 Index to its highest close on
record on Dec. 26. Dubai’s benchmark index entered a bull market on Dec. 21 and surged 13
percent last week as confidence returned following a collapse in crude prices.
 Ten-year Treasuries have outperformed two-year notes this year by the most since 2005 as
the Federal Reserve prepares to raise interest rates from a record amid low inflation. The
yield on 10-year securities has fallen 78 basis points in 2014 to 2.25 percent at 11:36 a.m. in
Tokyo, compared with a 36 basis point rise in 2-year yields to 0.74 percent, according to
Bloomberg Bond Trader prices. The spread has narrowed by 114 basis points to 150 basis
points, reversing a 114 basis point widening last year. “Everybody believes that the Fed is
ready to start policy normalization next year,” pushing up yields on shorter-dated Treasuries,
said Kei Katayama, who trades bonds at Daiwa SB Investments in Tokyo. “Low inflation is
supporting the long end.” Shorter maturities are more sensitive to changes in central bank
policy, while longer-dated tenors are more sensitive to inflation, which eats into returns over
time.
 Planes and ships from four nations scoured the Java Sea for an AirAsia Bhd. passenger jet that
vanished off the coast of Borneo more than a day ago with 162 people on board, as the
search area continued to widen.
 Islamic Bank of Britain (IBB), the UK’s only wholly Shariah-compliant retail bank, will hereafter
be known as Al Rayan Bank. The change signifies the beginning of a new chapter for the
lender as the European subsidiary of Masraf Al Rayan, the second largest bank in Qatar by
market value. Al Rayan Bank’s activities will continue to be monitored by an independent
Shariah supervisory committee and a dedicated Shariah compliance officer. It will continue to
operate as a UK regulated bank, and customers’ deposits will remain protected by the
financial services compensation scheme.
FX COMMENTARY
The Dollar began the final week of 2014 on firm footing, as the Euro flirted with two-year lows
while investors awaited a key vote in Greece later in the session. Activity is likely to be thin this
week ahead of the New Year's holiday and many investors have already closed out their positions.
The final U.S. data reports of the year will be in focus, including U.S. home prices on Tuesday and
weekly jobless claims on Wednesday. On Tuesday, the Conference Board will release its index on
U.S. consumer confidence, which fell to 88.7 in November but was expected to show improvement.
Solid data is likely to reinforce the view that the U.S. economy is improving enough for the Federal
Reserve to consider ending its near-zero interest-rate policy in mid-2015, in contrast to the stillsluggish economies of the Euro Zone and Japan where central bankers are likely to continue
monetary easing. The Dollar was up about 0.1 percent at 120.42 Yen, within sight of its 7-1/2-year
high of 121.86 set earlier this month. Top Japanese companies think the Yen will not decline much
further next year and may even stage a sizeable rebound despite the Bank of Japan's easing
policies and Prime Minister Shinzo Abe's stimulus, survey released showed. The Dollar was steady
against the Euro at $1.2178 after the European unit fell as low as $1.2168 earlier in the session, just
a few ticks above last week's 28-month low of $1.2165. Greek Prime Minister Antonis Samaras
faces a vote in parliament later on today that will decide whether the country goes to snap
elections that could bring the leftwing Syriza party to power and derail an international bailout.
But underpinning the single currency, Jens Weidmann, a member of the European Central Bank's
Governing Council and the president of Germany's Bundesbank, told a newspaper that growth in
Germany - Europe's biggest economy - might be better than expected next year, and that the
situation in Europe is not as bad as many people think. Weidmann is the most vocal opponent of
quantitative easing, which some economists believe is the ECB's last resort to revive the Euro Zone
economy.
Monday, December 29, 2014
REGIONAL STOCK MARKETS % CHG
Year to Date
Yesterday
3.00
EGYPT
DOHA
2.50
DUBAI
2.00
BAHRAIN
1.50
ABU DHABI
JORDAN
1.00
SAUDI
0.50
LEBANON
MUSCAT
-
KUWAIT
(0.50)
(20.00) (10.00)
-
10.00
20.00
30.00
40.00
Spread to Bench
6.0
Today
01/01/2014
Yield %
4.0
2.0
0.0
-2.0
QATAR 4
01/20/15
QATAR 3
1/8
01/20/17
QATAR
2.099
01/18/18
Sukuk
QATAR
6.55
04/09/19
QATAR 5 QATDIA 5 QATAR 4
1/4
07/21/20
1/2
01/20/20
01/20/22
QATAR
3.241
01/18/23
Sukuk
QATAR 9 QATAR 6.4 QATAR 5
3/4
01/20/40
3/4
06/15/30
01/20/42
300
200
100
(100)
(200)
(300)
(400)
(500)
Spread bps
QSOV. USD YIELD CURVE
CHART OF THE DAY
The biggest swings in oil prices in more than three years are helping push up demand for shares in the largest exchange-traded fund that follows
crude. The CHART OF THE DAY shows the CBOE Crude Oil Volatility Index, which measures oil price fluctuations using options of the U.S. Oil Fund,
climbed to the highest level since October 2011. The lower panel shows the number of shares outstanding of the $1.25 billion ETF at the most since
June 2010. The ETF trades under the ticker symbol USO. “More volatility has historically been good for USO’s share outstanding count,” said John
Hyland, chief investment officer of U.S. Commodity Futures Funds, the Alameda, California-based manager of the U.S. Oil Fund. “When volatility in
oil is low we see less trading and we end up with fewer shares. When volatility is higher we see the reverse.” West Texas Intermediate, the U.S.
crude benchmark, has tumbled 42 percent this year as soaring output and a slowdown in global demand growth created a supply glut. Prices
gained 1 percent yesterday to $59.97 a barrel on the New York Mercantile Exchange. The U.S. Oil Fund, which follows WTI futures, gained 3.1
percent to $21.56 on the New York Stock Exchange. The ETF has dropped 39 percent this year. Shares outstanding reached 59.7 million on Dec. 22.
When demand rises, the U.S. Oil Fund’s authorized participants, which include Bank of America Corp. and Goldman Sachs Group Inc., create ETF
shares in large blocks. Shares are redeemed when demand falls.
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
Contact Cb Dealing Room:
Telephone: +974 - 44202253, 44202259, 44202261
Email: [email protected]
Monday, December 29, 2014