SlideShare ist ein Scribd-Unternehmen logo
1 von 4
Downloaden Sie, um offline zu lesen
International
Global stock, bonds and commodities rallied on a dovish interpretation of the latest comments from the
US Federal Reserve, leading to hopes of continued liquidity support. Earnings optimism also helped equity
markets in many developed economies clawback to record highs, and the MSCI AC World Index closed up
3.36%. The IMF lowered global growth projections by 25 bps each to 3.1% for 2013 and 3.8% for 2014
respectively, citing increased downward risks to Emerging economies growth and prolonged weakness in
euro area. Global benchmark treasury bond yields eased as latest comments from Fed officials and FOMC
meeting minutes assuaged investor concerns about policy direction. The NYSE Euronext took charge of
LIBOR rate setting supervision. Commodities including gold witnessed a relief rally this week and the
Reuters Jefferies CRB Index closed up 2.12%.The US dollar index edged lower amidst the dovish remarks,
but closed week off lows.The euro gained strength, while the yen weakened.
• Asia-Pacific: Regional equities and currencies gained ground this week on global central bank newsflow,
even as China economic data came in below expectations. China’s trade surplus expanded but less than
expectations as both exports and imports fell. In another step to liberalize currency controls, Chinese
authorities nearly doubled Qualified Foreign Institutional Investor quota limits to $150 bln this week.
Singapore’s economic growth accelerated sharply on the back of growth in manufacturing. Central banks
in Korea, Malaysia and Japan maintained status quo on policy. Bank Indonesia raised benchmark policy
rate by 50 bps to 6.50%.While IMF upgraded 2013 growth forecasts for Japan to 2% from 1.5%, it reduced
growth estimates for the Emerging Asian economies by 0.3% to 6.9%.
• Europe/MENA: Leading European indices notched up gains even as economic and policy news
flow remained weak. Fitch downgraded France’s credit rating one level to AA+ from AAA and S&P cut
Italy’s credit rating to BBB from BBB+. While Greece secured the next round of funding this week,
Portugal borrowing costs spiked up amidst political uncertainty and the reform programme. On the
economic front, latest data showed Eurozone industrial output contracted in May and German exports
also fell. In its latest world economic outlook update, IMF cut Euro area growth estimates by 0.2% to -
0.6% while revising UK growth forecasts upwards. On the corporate front, Schneider Electric is in talks
to acquire Invensys for $5 bln and UK government approved privatization of Royal Mail. Russia central
bank kept rates on hold and introduced a new lending facility.The situation in Egypt stabilized and a
new interim Prime Minister was appointed and neighbouring nations extended financial help.
• Americas: Fed statements reassured investors the central bank will take time to shift its policy stance
and this alongside hopes of good corporate earnings helped US and other key regional markets end
higher. US consumer confidence, as measured by the Thomson Reuters/University of Michigan,
decreased and weekly jobless claims increased. Large dividend payouts by Freddie Mac and Fannie
Mae helped the US post a record budget surplus in June. Mexico’s central bank left key rates
unchanged. In its efforts to curb inflationary pressures, Brazil’s central bank raised the Selic rate by
50 bps to 8.5%. Economic activity in Brazil however remains lackluster. On the M&A front, AT&T
is buying Leap Wireless for $1.2 bln and grocery chain Kroger said it is buying Harris Teeter
Supermarkets for $2.5 bln. As per IMF’s latest report, Canada GDP will expand at a faster pace than
previously estimated, while the US growth rate is expected to slow to 1.7% (1.9% estimated earlier).
Market Review
WEEK ENDED JULY 12, 2013
Weekly Weekly
change (%) change (%)
MSCI AC World Index 3.36 Xetra DAX 5.21
FTSE Eurotop 100 2.70 CAC 40 2.70
MSCI AC Asia Pacific 2.70 FTSE 100 2.66
Dow Jones 2.17 Hang Seng 2.03
Nasdaq 3.47 Nikkei 1.37
S&P 500 2.96 KOSPI 2.00
India - Equity
Indian equity markets remained on an upward trajectory as comments from US Federal Reserve officials
comforted investors. Gains were led by tech stocks, which witnessed a sharp rally following Infosys
positive earnings report. Auto and oil & gas stocks however posted declines. FII outflows amounted to
$219 mln in the first four trading days of the week.
• Macro: Growth in India’s industrial production faltered in May – the index slid 1.6%yoy on the back of
decline in manufacturing (-2%) and mining (-5.7%) output. Electricity production growth accelerated
to 6.2%yoy (up from 4.2% in April) and offset some of the negative impact on headline numbers.
The latest set of numbers emphasizes the need for continued policy action to address issues impacting
investment growth.
Source: CEIC, Ministry of Commerce, Morgan Stanley Research
Helped by sharp decline in gold and oil imports, India’s trade deficit narrowed to about $12 bln in June
(from over $20 bln in May). However, exports growth remained weak – exports fell by 4.6%yoy. Going
forward, the trade deficit levels could normalize if demand for precious metals remains subdued. Oil price
movements, external demand and gold imports will shape trade deficit trends in coming months.
• Corporate Earnings: The earnings season started off well this week with Infosys results surpassing
market expectations. In the ongoing weak macro environment, we expect companies dependent on the
investment cycle to report subdued earnings growth. Ongoing weakness in consumer spending is likely
to weigh on consumer durables companies as well.
-16%
-14%
-12%
-10%
-8%
-6%
-4%
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Trade Deficit (3-months Trailing, as % of GDP annualized)
Trade Deficit (Monthly, as % of GDP annualized)
Weekly change (%)
S&P BSE Sensex 2.37
CNX Nifty 2.40
CNX 500 2.10
CNX Midcap 1.09
S&P BSE Smallcap 0.79
India - Debt
Indian bond yields were volatile this week, tracking the rupee and economic data. Overall yields closed
mixed - bond yields closed almost flat at the shorter end of the curve, but moved up at the longer end of
the curve.
• Yield Movements: Yields on the 1- and 5-year papers decreased by 1 bp each, while those on the
10-year paper firmed up 3 bps to 7.62%.Yield on the 30 year gilts increased 7 bps.
• Liquidity/borrowings: Systemic liquidity tightened compared to last week levels and as a result, repos
averaged higher this week and overnight call money rates rose to 7% levels from 6.60% last week.
Scheduled bond auctions of GOI securities worth Rs. 15,000 crores received bids of over Rs. 37000 crores
and there was no devolvement on primary dealers.
• Forex: The Indian rupee witnessed heightened volatility this week – Fed statements, RBI intervention
and policy measures to curb speculative trading helped the currency rebound from record lows of
Rs.61.21/$ to close at Rs.59.56/$. For the week as a whole, the currency posted gains of 1.1%. As of Jul
5, 2013, India’s forex reserves stood at $280 bln, $4.5 bln lower than last week levels.
Change in Foreign Reserves
Source: CEIC, Bloomberg, CLSA Asia-Pacific Markets
Reports indicate most Asian countries have recorded a fall in foreign reserves over the last quarter due to
foreign outflows and central bank intervention to prop up local currencies. In case of RBI, the fall in price
of gold, which accounts for a relatively large proportion of the bank’s reserves contributed to the decline.
(20)
(15)
(10)
(5)
0
5
10
TA KO SI PH CH MA TH IN ID
(USD bn) 2Q13 Since end-2012 Jun/2013
• Macro: After three months of declines, Consumer Price Inflation (CPI) increased last month to 9.87%
from 9.3% led primarily by a rise in fuel and food prices.The rise in CPI along with weak rupee are key
concerns that could keep RBI on hold even as economic activity remains sluggish.
12.07.2013 05.07.2013
Exchange rate (Rs./$) 59.56 60.22
Average repos (Rs. Cr) 51,699 27,845
1-yr gilt yield (%) 7.53 7.54
5-yr gilt yield (%) 7.68 7.69
10-yr gilt yield (%) 7.62 7.59
Source: Reuters, CCIL.
The information contained in this commentary is not a complete presentation of every material fact regarding any industry,security or the fund and
is neither an offer for units nor an invitation to invest.This communication is meant for use by the recipient and not for circulation/reproduction
without prior approval.The views expressed by the portfolio managers are based on current market conditions and information available to them
and do not constitute investment advice.
Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAVs of the schemes may go up or down depending
upon the factors and forces affecting the securities market.The past performance of the mutual funds managed by the Franklin Templeton Group
and its affiliates is not necessarily indicative of future performance of the schemes. Please refer to the Scheme Information Document
carefully before investing. Statutory Details: Franklin Templeton Mutual Fund in India has been set up as a trust by Templeton International
Inc. (liability restricted to the seed corpus of Rs.1 lac) with Franklin Templeton Trustee Services Pvt. Ltd. as the trustee (Trustee under the Indian
Trust Act 1882) and with Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager.
Copyright © 2012 Franklin Templeton Investments.All rights reserved

Weitere ähnliche Inhalte

Was ist angesagt?

The World This Week 4th Nov - 9th Nov
The World This Week 4th Nov - 9th NovThe World This Week 4th Nov - 9th Nov
The World This Week 4th Nov - 9th NovKarvy Private Wealth
 
Investment Outlook 2016 - Franklin Templeton Investments
Investment Outlook 2016 - Franklin Templeton InvestmentsInvestment Outlook 2016 - Franklin Templeton Investments
Investment Outlook 2016 - Franklin Templeton InvestmentsCarlos Francisco Gómez Guzmán
 
The World This Week November 7 - November 11 - 2016
The World This Week November 7 - November 11 - 2016The World This Week November 7 - November 11 - 2016
The World This Week November 7 - November 11 - 2016Karvy Private Wealth
 
Macroeconomics - Money supply
Macroeconomics - Money supply Macroeconomics - Money supply
Macroeconomics - Money supply neohutagaol27
 

Was ist angesagt? (20)

Weekly Market Review - February 7, 2014
Weekly Market Review - February 7, 2014Weekly Market Review - February 7, 2014
Weekly Market Review - February 7, 2014
 
Weekly Market Review Apr 19, 2013
Weekly Market Review  Apr 19, 2013Weekly Market Review  Apr 19, 2013
Weekly Market Review Apr 19, 2013
 
Weekly Market Review, Apr 26, 2013
Weekly Market Review, Apr 26, 2013Weekly Market Review, Apr 26, 2013
Weekly Market Review, Apr 26, 2013
 
Weekly Market Review - August 9, 2013
Weekly Market Review - August 9, 2013Weekly Market Review - August 9, 2013
Weekly Market Review - August 9, 2013
 
Weekly Market Review - December 20, 2013
Weekly Market Review - December 20, 2013Weekly Market Review - December 20, 2013
Weekly Market Review - December 20, 2013
 
Weekly Market Review - October 4, 2013
Weekly Market Review - October 4, 2013Weekly Market Review - October 4, 2013
Weekly Market Review - October 4, 2013
 
Weekly Market Review - August 16, 2013
Weekly Market Review - August 16, 2013Weekly Market Review - August 16, 2013
Weekly Market Review - August 16, 2013
 
Weekly Market Review - May 10, 2013
Weekly Market Review - May 10, 2013Weekly Market Review - May 10, 2013
Weekly Market Review - May 10, 2013
 
Weekly Market Review - July 5, 2013
Weekly Market Review - July 5, 2013Weekly Market Review - July 5, 2013
Weekly Market Review - July 5, 2013
 
Weekly Market Review - January 24, 2014
Weekly Market Review - January 24, 2014Weekly Market Review - January 24, 2014
Weekly Market Review - January 24, 2014
 
Weekly Market Review - September 06, 2013
Weekly Market Review - September 06, 2013Weekly Market Review - September 06, 2013
Weekly Market Review - September 06, 2013
 
The World This Week 4th Nov - 9th Nov
The World This Week 4th Nov - 9th NovThe World This Week 4th Nov - 9th Nov
The World This Week 4th Nov - 9th Nov
 
Weekly Market Review - October 18, 2013
Weekly Market Review - October 18, 2013Weekly Market Review - October 18, 2013
Weekly Market Review - October 18, 2013
 
Investment Outlook 2016 - Franklin Templeton Investments
Investment Outlook 2016 - Franklin Templeton InvestmentsInvestment Outlook 2016 - Franklin Templeton Investments
Investment Outlook 2016 - Franklin Templeton Investments
 
Advice for the wise july 2013
Advice for the wise  july 2013Advice for the wise  july 2013
Advice for the wise july 2013
 
Weekly Market Review - May 24, 2013
Weekly Market Review - May 24, 2013Weekly Market Review - May 24, 2013
Weekly Market Review - May 24, 2013
 
Weekly Market Review - August 30, 2013
Weekly Market Review - August 30, 2013Weekly Market Review - August 30, 2013
Weekly Market Review - August 30, 2013
 
The World This Week November 7 - November 11 - 2016
The World This Week November 7 - November 11 - 2016The World This Week November 7 - November 11 - 2016
The World This Week November 7 - November 11 - 2016
 
Weekly Market Review - June 21, 2013
Weekly Market Review - June 21, 2013Weekly Market Review - June 21, 2013
Weekly Market Review - June 21, 2013
 
Macroeconomics - Money supply
Macroeconomics - Money supply Macroeconomics - Money supply
Macroeconomics - Money supply
 

Andere mochten auch

Introduction to Mutual Funds - Benefits and Regulatory Structure
Introduction to Mutual Funds -  Benefits and Regulatory StructureIntroduction to Mutual Funds -  Benefits and Regulatory Structure
Introduction to Mutual Funds - Benefits and Regulatory StructureFranklin Templeton India
 
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείων
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείωνAνδρέας Aνδρεάδης, H iστορία των εθνικών δανείων
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείωνNikolaos Karatsoris
 
YouScan product presentation Moldova
YouScan product presentation MoldovaYouScan product presentation Moldova
YouScan product presentation MoldovaPavel Sidorenco
 
Willoughby siding 888 778 0212
Willoughby siding 888 778 0212Willoughby siding 888 778 0212
Willoughby siding 888 778 0212hansons0588
 
Reverse 1031 Exchange
Reverse 1031 ExchangeReverse 1031 Exchange
Reverse 1031 ExchangeJeff Peterson
 
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียน
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียนการพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียน
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียนKruKaiNui
 
International Journal of Engineering Research and Development (IJERD)
International Journal of Engineering Research and Development (IJERD)International Journal of Engineering Research and Development (IJERD)
International Journal of Engineering Research and Development (IJERD)IJERD Editor
 
Resume 1 Tony Andersson
Resume 1 Tony AnderssonResume 1 Tony Andersson
Resume 1 Tony AnderssonTony Andersson
 
Daily mcx newsletter 10 july 2013
Daily mcx newsletter 10 july 2013Daily mcx newsletter 10 july 2013
Daily mcx newsletter 10 july 2013Richa Sharma
 

Andere mochten auch (20)

Weekly Market Review Oct 26, 2012
Weekly Market Review   Oct 26, 2012Weekly Market Review   Oct 26, 2012
Weekly Market Review Oct 26, 2012
 
Weekly market review July 13, 2012
Weekly market review   July 13, 2012Weekly market review   July 13, 2012
Weekly market review July 13, 2012
 
Weekly market review - April 20, 2012
Weekly market review - April 20, 2012Weekly market review - April 20, 2012
Weekly market review - April 20, 2012
 
Union budget fy14 feb'13
Union budget fy14 feb'13Union budget fy14 feb'13
Union budget fy14 feb'13
 
Weekly Market Review - Mar 29, 2013
Weekly Market Review - Mar 29, 2013Weekly Market Review - Mar 29, 2013
Weekly Market Review - Mar 29, 2013
 
Weekly Market Review june 22, 2012
Weekly Market Review june 22, 2012Weekly Market Review june 22, 2012
Weekly Market Review june 22, 2012
 
Introduction to Mutual Funds - Benefits and Regulatory Structure
Introduction to Mutual Funds -  Benefits and Regulatory StructureIntroduction to Mutual Funds -  Benefits and Regulatory Structure
Introduction to Mutual Funds - Benefits and Regulatory Structure
 
Identifying Your Financial Goals
Identifying Your Financial GoalsIdentifying Your Financial Goals
Identifying Your Financial Goals
 
Weekly market review, Feb 08, 2013
Weekly market review,  Feb 08, 2013Weekly market review,  Feb 08, 2013
Weekly market review, Feb 08, 2013
 
Presentation1 (1)
Presentation1 (1)Presentation1 (1)
Presentation1 (1)
 
Misturador caules
Misturador caulesMisturador caules
Misturador caules
 
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείων
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείωνAνδρέας Aνδρεάδης, H iστορία των εθνικών δανείων
Aνδρέας Aνδρεάδης, H iστορία των εθνικών δανείων
 
YouScan product presentation Moldova
YouScan product presentation MoldovaYouScan product presentation Moldova
YouScan product presentation Moldova
 
Distinction
DistinctionDistinction
Distinction
 
Willoughby siding 888 778 0212
Willoughby siding 888 778 0212Willoughby siding 888 778 0212
Willoughby siding 888 778 0212
 
Reverse 1031 Exchange
Reverse 1031 ExchangeReverse 1031 Exchange
Reverse 1031 Exchange
 
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียน
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียนการพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียน
การพัฒนาหลักสูตรสถานศึกษาที่เน้น อาเซียน และการจัดการเรียนรู้เกี่ยวกับ อาเซียน
 
International Journal of Engineering Research and Development (IJERD)
International Journal of Engineering Research and Development (IJERD)International Journal of Engineering Research and Development (IJERD)
International Journal of Engineering Research and Development (IJERD)
 
Resume 1 Tony Andersson
Resume 1 Tony AnderssonResume 1 Tony Andersson
Resume 1 Tony Andersson
 
Daily mcx newsletter 10 july 2013
Daily mcx newsletter 10 july 2013Daily mcx newsletter 10 july 2013
Daily mcx newsletter 10 july 2013
 

Ähnlich wie Weekly Market Review - July 12, 2013

The IMF’s latest forecasts for global growth in 2013
The IMF’s latest forecasts for global growth in 2013 The IMF’s latest forecasts for global growth in 2013
The IMF’s latest forecasts for global growth in 2013 QNB Group
 
Week Ahead: Markets to remain volatile with positive bias - Eastern Financiers
Week Ahead: Markets to remain volatile with positive bias - Eastern FinanciersWeek Ahead: Markets to remain volatile with positive bias - Eastern Financiers
Week Ahead: Markets to remain volatile with positive bias - Eastern FinanciersIndiaNotes.com
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012Natraj71
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012Natraj71
 

Ähnlich wie Weekly Market Review - July 12, 2013 (16)

Weekly Market Review - June 28, 2013
Weekly Market Review - June 28, 2013Weekly Market Review - June 28, 2013
Weekly Market Review - June 28, 2013
 
Weekly Market Review - December 13, 2013
Weekly Market Review - December 13, 2013Weekly Market Review - December 13, 2013
Weekly Market Review - December 13, 2013
 
Weekly Market Review ; May 3, 2013
Weekly Market Review ; May 3, 2013Weekly Market Review ; May 3, 2013
Weekly Market Review ; May 3, 2013
 
Weekly Market Review - August 23, 2013
Weekly Market Review - August 23, 2013Weekly Market Review - August 23, 2013
Weekly Market Review - August 23, 2013
 
Weekly Market Review - January 03, 2014
Weekly Market Review - January 03, 2014Weekly Market Review - January 03, 2014
Weekly Market Review - January 03, 2014
 
Weekly Market Review - September 13, 2013
Weekly Market Review - September 13, 2013Weekly Market Review - September 13, 2013
Weekly Market Review - September 13, 2013
 
Weekly Market Review May 12, 2012
Weekly Market Review May 12, 2012Weekly Market Review May 12, 2012
Weekly Market Review May 12, 2012
 
Weekly Market Review - September 27, 2013
Weekly Market Review - September 27, 2013Weekly Market Review - September 27, 2013
Weekly Market Review - September 27, 2013
 
Weekly market review June 29
Weekly market review June 29Weekly market review June 29
Weekly market review June 29
 
Weekly market review jan 25, 2013
Weekly market review   jan 25, 2013Weekly market review   jan 25, 2013
Weekly market review jan 25, 2013
 
Weekly Market Review, April 05, 2013
Weekly Market Review, April 05, 2013Weekly Market Review, April 05, 2013
Weekly Market Review, April 05, 2013
 
The IMF’s latest forecasts for global growth in 2013
The IMF’s latest forecasts for global growth in 2013 The IMF’s latest forecasts for global growth in 2013
The IMF’s latest forecasts for global growth in 2013
 
Weekly market review feb 22, 2013
Weekly market review   feb 22, 2013Weekly market review   feb 22, 2013
Weekly market review feb 22, 2013
 
Week Ahead: Markets to remain volatile with positive bias - Eastern Financiers
Week Ahead: Markets to remain volatile with positive bias - Eastern FinanciersWeek Ahead: Markets to remain volatile with positive bias - Eastern Financiers
Week Ahead: Markets to remain volatile with positive bias - Eastern Financiers
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012
 

Mehr von Franklin Templeton India

Mehr von Franklin Templeton India (6)

Assessing Your Risk Appetite
Assessing Your Risk AppetiteAssessing Your Risk Appetite
Assessing Your Risk Appetite
 
Ideal Asset Allocation
Ideal Asset AllocationIdeal Asset Allocation
Ideal Asset Allocation
 
Introduction To Various Asset Classes Equity, Debt, Gold
Introduction To Various Asset Classes Equity, Debt, GoldIntroduction To Various Asset Classes Equity, Debt, Gold
Introduction To Various Asset Classes Equity, Debt, Gold
 
Checking Your Financial Health
Checking Your Financial HealthChecking Your Financial Health
Checking Your Financial Health
 
Time Value Of Money & When to Start Investing
Time Value Of Money & When to Start InvestingTime Value Of Money & When to Start Investing
Time Value Of Money & When to Start Investing
 
Are You Saving or Are You Investing?
Are You Saving or Are You Investing?Are You Saving or Are You Investing?
Are You Saving or Are You Investing?
 

Kürzlich hochgeladen

Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024Neil Day
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMFaisal834049
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfSCBEICSCB
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 

Kürzlich hochgeladen (20)

Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
E-levy and Merchant Payment Exemption in Ghana
E-levy and Merchant Payment Exemption in GhanaE-levy and Merchant Payment Exemption in Ghana
E-levy and Merchant Payment Exemption in Ghana
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdf
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 

Weekly Market Review - July 12, 2013

  • 1. International Global stock, bonds and commodities rallied on a dovish interpretation of the latest comments from the US Federal Reserve, leading to hopes of continued liquidity support. Earnings optimism also helped equity markets in many developed economies clawback to record highs, and the MSCI AC World Index closed up 3.36%. The IMF lowered global growth projections by 25 bps each to 3.1% for 2013 and 3.8% for 2014 respectively, citing increased downward risks to Emerging economies growth and prolonged weakness in euro area. Global benchmark treasury bond yields eased as latest comments from Fed officials and FOMC meeting minutes assuaged investor concerns about policy direction. The NYSE Euronext took charge of LIBOR rate setting supervision. Commodities including gold witnessed a relief rally this week and the Reuters Jefferies CRB Index closed up 2.12%.The US dollar index edged lower amidst the dovish remarks, but closed week off lows.The euro gained strength, while the yen weakened. • Asia-Pacific: Regional equities and currencies gained ground this week on global central bank newsflow, even as China economic data came in below expectations. China’s trade surplus expanded but less than expectations as both exports and imports fell. In another step to liberalize currency controls, Chinese authorities nearly doubled Qualified Foreign Institutional Investor quota limits to $150 bln this week. Singapore’s economic growth accelerated sharply on the back of growth in manufacturing. Central banks in Korea, Malaysia and Japan maintained status quo on policy. Bank Indonesia raised benchmark policy rate by 50 bps to 6.50%.While IMF upgraded 2013 growth forecasts for Japan to 2% from 1.5%, it reduced growth estimates for the Emerging Asian economies by 0.3% to 6.9%. • Europe/MENA: Leading European indices notched up gains even as economic and policy news flow remained weak. Fitch downgraded France’s credit rating one level to AA+ from AAA and S&P cut Italy’s credit rating to BBB from BBB+. While Greece secured the next round of funding this week, Portugal borrowing costs spiked up amidst political uncertainty and the reform programme. On the economic front, latest data showed Eurozone industrial output contracted in May and German exports also fell. In its latest world economic outlook update, IMF cut Euro area growth estimates by 0.2% to - 0.6% while revising UK growth forecasts upwards. On the corporate front, Schneider Electric is in talks to acquire Invensys for $5 bln and UK government approved privatization of Royal Mail. Russia central bank kept rates on hold and introduced a new lending facility.The situation in Egypt stabilized and a new interim Prime Minister was appointed and neighbouring nations extended financial help. • Americas: Fed statements reassured investors the central bank will take time to shift its policy stance and this alongside hopes of good corporate earnings helped US and other key regional markets end higher. US consumer confidence, as measured by the Thomson Reuters/University of Michigan, decreased and weekly jobless claims increased. Large dividend payouts by Freddie Mac and Fannie Mae helped the US post a record budget surplus in June. Mexico’s central bank left key rates unchanged. In its efforts to curb inflationary pressures, Brazil’s central bank raised the Selic rate by 50 bps to 8.5%. Economic activity in Brazil however remains lackluster. On the M&A front, AT&T is buying Leap Wireless for $1.2 bln and grocery chain Kroger said it is buying Harris Teeter Supermarkets for $2.5 bln. As per IMF’s latest report, Canada GDP will expand at a faster pace than previously estimated, while the US growth rate is expected to slow to 1.7% (1.9% estimated earlier). Market Review WEEK ENDED JULY 12, 2013
  • 2. Weekly Weekly change (%) change (%) MSCI AC World Index 3.36 Xetra DAX 5.21 FTSE Eurotop 100 2.70 CAC 40 2.70 MSCI AC Asia Pacific 2.70 FTSE 100 2.66 Dow Jones 2.17 Hang Seng 2.03 Nasdaq 3.47 Nikkei 1.37 S&P 500 2.96 KOSPI 2.00 India - Equity Indian equity markets remained on an upward trajectory as comments from US Federal Reserve officials comforted investors. Gains were led by tech stocks, which witnessed a sharp rally following Infosys positive earnings report. Auto and oil & gas stocks however posted declines. FII outflows amounted to $219 mln in the first four trading days of the week. • Macro: Growth in India’s industrial production faltered in May – the index slid 1.6%yoy on the back of decline in manufacturing (-2%) and mining (-5.7%) output. Electricity production growth accelerated to 6.2%yoy (up from 4.2% in April) and offset some of the negative impact on headline numbers. The latest set of numbers emphasizes the need for continued policy action to address issues impacting investment growth. Source: CEIC, Ministry of Commerce, Morgan Stanley Research Helped by sharp decline in gold and oil imports, India’s trade deficit narrowed to about $12 bln in June (from over $20 bln in May). However, exports growth remained weak – exports fell by 4.6%yoy. Going forward, the trade deficit levels could normalize if demand for precious metals remains subdued. Oil price movements, external demand and gold imports will shape trade deficit trends in coming months. • Corporate Earnings: The earnings season started off well this week with Infosys results surpassing market expectations. In the ongoing weak macro environment, we expect companies dependent on the investment cycle to report subdued earnings growth. Ongoing weakness in consumer spending is likely to weigh on consumer durables companies as well. -16% -14% -12% -10% -8% -6% -4% Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Trade Deficit (3-months Trailing, as % of GDP annualized) Trade Deficit (Monthly, as % of GDP annualized)
  • 3. Weekly change (%) S&P BSE Sensex 2.37 CNX Nifty 2.40 CNX 500 2.10 CNX Midcap 1.09 S&P BSE Smallcap 0.79 India - Debt Indian bond yields were volatile this week, tracking the rupee and economic data. Overall yields closed mixed - bond yields closed almost flat at the shorter end of the curve, but moved up at the longer end of the curve. • Yield Movements: Yields on the 1- and 5-year papers decreased by 1 bp each, while those on the 10-year paper firmed up 3 bps to 7.62%.Yield on the 30 year gilts increased 7 bps. • Liquidity/borrowings: Systemic liquidity tightened compared to last week levels and as a result, repos averaged higher this week and overnight call money rates rose to 7% levels from 6.60% last week. Scheduled bond auctions of GOI securities worth Rs. 15,000 crores received bids of over Rs. 37000 crores and there was no devolvement on primary dealers. • Forex: The Indian rupee witnessed heightened volatility this week – Fed statements, RBI intervention and policy measures to curb speculative trading helped the currency rebound from record lows of Rs.61.21/$ to close at Rs.59.56/$. For the week as a whole, the currency posted gains of 1.1%. As of Jul 5, 2013, India’s forex reserves stood at $280 bln, $4.5 bln lower than last week levels. Change in Foreign Reserves Source: CEIC, Bloomberg, CLSA Asia-Pacific Markets Reports indicate most Asian countries have recorded a fall in foreign reserves over the last quarter due to foreign outflows and central bank intervention to prop up local currencies. In case of RBI, the fall in price of gold, which accounts for a relatively large proportion of the bank’s reserves contributed to the decline. (20) (15) (10) (5) 0 5 10 TA KO SI PH CH MA TH IN ID (USD bn) 2Q13 Since end-2012 Jun/2013
  • 4. • Macro: After three months of declines, Consumer Price Inflation (CPI) increased last month to 9.87% from 9.3% led primarily by a rise in fuel and food prices.The rise in CPI along with weak rupee are key concerns that could keep RBI on hold even as economic activity remains sluggish. 12.07.2013 05.07.2013 Exchange rate (Rs./$) 59.56 60.22 Average repos (Rs. Cr) 51,699 27,845 1-yr gilt yield (%) 7.53 7.54 5-yr gilt yield (%) 7.68 7.69 10-yr gilt yield (%) 7.62 7.59 Source: Reuters, CCIL. The information contained in this commentary is not a complete presentation of every material fact regarding any industry,security or the fund and is neither an offer for units nor an invitation to invest.This communication is meant for use by the recipient and not for circulation/reproduction without prior approval.The views expressed by the portfolio managers are based on current market conditions and information available to them and do not constitute investment advice. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market.The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. Please refer to the Scheme Information Document carefully before investing. Statutory Details: Franklin Templeton Mutual Fund in India has been set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Franklin Templeton Trustee Services Pvt. Ltd. as the trustee (Trustee under the Indian Trust Act 1882) and with Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. Copyright © 2012 Franklin Templeton Investments.All rights reserved