MCB Market Update - 19th October 2016 - tcm12-12837
MCB Market Update - 19th October 2016 - tcm12-12837
MCB Market Update - 19th October 2016 - tcm12-12837
> The Great Britain pound rebounded to 1.2324 against the US dollar after a UK
government lawyer stated that the parliament would "very likely" have to ratify
any deal to take Britain out of the European Union while the core inflation for
the UK came in above expectations.
> The euro fell to USD 1.0970, just above the 2 1/2-month low of USD 1.0964 hit
on Monday, weighed down in cautious trade ahead of the ECB policy meeting on
tomorrow. Market players are nervous, as they expect the ECB chief Mario
Draghi to take a dovish stance to counter recent talk on the tapering of its asset
purchases.
> The CAD firmed to 1.3060 against the greenback yesterday on better-thanexpected results from Canadian Manufacturing Shipments during the month of
August.
> The Rand rallied to USD 13.88 its firmest in one week as fear over the recent
issue of the arrestation of the Finance Minister subsided.
> The Aussie weakened to USD 0.7662 this morning despite China reported that
GDP growth in the third quarter matched expectation along with solid figures
for retail sales, industrial output and fixed asset investment.
> The US dollar is trading stable on the local market while the euro and australian
dollar give up previous gains and the pound sterling rises for the second
consecutive day.
Market Highlights
Indicative Spot Rates
Bid
AUDMUR
Bid
Change (Rs.)
Today
Change (Rs.)
26.90
(0.02)
28.17
(0.02)
Offer
1m
3m
6m
1m
3m
6m
AUDMUR
26.87
26.87
26.84
28.19
28.25
28.34
40.89
CNYMUR
5.18
5.45
EURMUR
38.76
38.92
39.14
40.34
40.55
EURMUR
38.72
(0.14)
40.25
(0.14)
ZARMUR
2.53
2.50
2.46
2.65
2.63
2.60
JPYMUR
33.88
0.01
35.38
0.01
USDMUR
35.27
35.34
35.38
36.71
36.82
36.97
GBPMUR
43.33
43.45
43.61
45.09
45.27
45.56
ZARMUR
2.54
0.04
2.66
0.04
USDMUR
35.26
36.65
GBPMUR
43.30
0.20
45.01
0.21
EURMUR
EURUSD
GBPMUR
USDMUR
GBPUSD
USD INDEX
1.3400
36.80
98.40
41.00
1.1220
48.00
1.3100
36.70
97.70
40.80
1.1150
47.00
1.2800
36.60
97.00
40.60
1.1080
46.00
1.2500
36.50
96.30
40.40
1.1010
45.00
1.2200
36.40
95.60
1.0940
44.00
1.1900
36.30
24-Sep
29-Sep
4-Oct
9-Oct
14-Oct
19-Oct
24-Sep
29-Sep
4-Oct
9-Oct
14-Oct
GBPUSD
40.20
USDMUR
49.00
GBPMUR
1.1290
19-Oct
USD INDEX
41.20
EURUSD
EURMUR
Offer
Today
94.90
24-Sep
29-Sep
4-Oct
9-Oct
14-Oct
19-Oct
Today
Major Indices
Value at Close
Day Change %
Opening
High
Low
Latest
DOW JONES
18,086.40
0.42
AUDUSD
0.7666
0.7690
0.7662
0.7674
S&P 500
2,139.60
0.62
EURUSD
1.0979
1.0999
1.0971
1.0983
FTSE 100
7,000.06
0.76
GBPUSD
1.2292
1.2314
1.2272
1.2279
DAX
10,631.55
1.22
USDJPY
103.84
103.94
103.66
103.78
NIKKEI 225*
16,995.81
0.19
USDCHF
0.9896
0.9909
0.9875
0.9900
HANGSENG*
23,341.30
(0.23)
USDCNH
6.74
6.75
6.74
6.75
Time
Country
Event
Period
Actual
Expected
Prior
19-Oct
12 30
US
Sep
1.170M
1.142M
19-Oct
14 00
CA
0.5%
0.5%
20-Oct
00 30
AU
Unemployment Rate
Sep
5.7%
5.6%
20-Oct
08 30
UK
Sep
0.3%
-0.2%
This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as an offer, solicitation, or recommendation to buy or
sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg, Bank of Mauritius
FIXED INCOME
News
> Treasury prices headed north yesterday, driving yields lower, after US inflation
data showed that the pace of price appreciation for core goods slowed in
September.
> The yield on the benchmark 10-year treasury note settled at 1.748 percent,
compared with 1.766 percent on Monday and a four-month close high of 1.792
percent on Friday.
> In the UK, the yield on the 10 year gilt rose to 1.22 percent yesterday, its highest
level since the country voted to leave the EU after data showed that annual
consumer price inflation last month jumped to a two-year high of 1 per cent.
> Concerns over the inflation outlook had been a big factor causing bond yields in
the developed world to rise this month.
> Meanwhile, Saudi Arabia has started the process of selling its first international
bonds. Market participants believe that the size of the offerings, spreading in
five-year, 10-year and 30-year maturities, should exceed USD10 billion.
> Today, the Bank of Mauritius will auction Five-Year Government of Mauritius
Bonds for nominal value of MUR 1,600.0 Mio.
Market Highlights
Local Secondary Market
Bid (%)
Offer (%)
91 to 135
2.45
2.25
US Bonds
2 Year
5 Year
10 Year
0.803
1.236
1.747
Current
Level (%)
Previous (%)
4.00
4.40
136 to 180
2.55
2.35
UK Bonds
0.206
0.454
1.078
0.25 - 0.50
0 - 0.50
181 to 240
2.60
2.40
German Bonds
-0.670
-0.496
0.035
0.25
0.50
241 to 300
2.70
2.50
0.0
0.0
301 to 364
2.80
2.60
1.50
1.75
4.00
3.50
364
3.00
2.50
182
LIBOR (%)
1 Week
1 Month
3 Months
6 Months
EUR
-0.389
-0.379
-0.324
-0.215
USD
0.458
0.526
0.881
1.261
GBP
0.251
0.265
0.402
0.566
EURIBOR
-0.380
-0.371
-0.311
-0.204
JIBAR
n/a
7.117
7.358
7.975
2.00
91
1.50
2yr
5yr
7yr
10yr
EURIBOR - 3m
-0.296
-0.205
-0.031
0.282
USD LIBOR - 3m
1.035
1.257
1.400
1.581
Tenor
1.00
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
COMMODITIES
Rolling Gold & Oil Prices
News
> Gold, which is sensitive to moves in interest rates and the dollar, gained as
the greenback traded mixed.
Oil Price
1345
54.00
1330
52.50
1315
51.00
1300
49.50
1285
48.00
1270
46.50
1255
45.00
1240
43.50
24-Sep
29-Sep
4-Oct
9-Oct
14-Oct
19-Oct
> Oil prices extended gains, bolstered by falling crude inventories, the
weaker US dollar and OPEC statement indicating the planned output cut
was achievable.
Gold Price
> The American Petroleum Institute data showed an unexpected draw of 3.8
million barrels in US crude stocks in the week to October 14. The US Energy
Information Administration (EIA) is due to release official fuel storage data
later today.
Spot Market
Futures Market
Today
Change ($)
Today
Change ($)
49.59
0.42
52.12
0.35
50.75
0.57
50.75
0.57
Gold ($)
1,262.20
3.66
1,262.90
8.50
Silver ($)
17.65
0.02
17.60
0.17
This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as an offer, solicitation, or recommendation to buy or
sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg, Bank of Mauritius