Global Covid cases rose further (3.5mn) again last week, led by Europe and Asia. Yet global Covid vaccination drive also continues to ramp up (Japan being key highlight this week). Key market trends for last week. (1) Govt interest rates were mixed. (2) Corporate/ Credit spreads have increased moderately in July21, basis our analysis. (3) US/ EU interest rates declined again last week. (4) Gold, the risk off commodity, was largely range bound last week. (5) India/ US equity market volatility remained below-normal/ normal. (6) The Indian equity/ share market was largely range bound last week. Foreign investor flows remained -ve despite the blockbuster Zomato IPO (strong FII interest). (7) But the US/ EU markets reported strong gains during the week. (8) Energy markets were mixed – Crude Oil seems stable during the week but had a topsy-turvy trend – sharp decline on Monday followed by strong recovery over the next 4 days. But the star was Natural Gas – US$4 level hit even before Winter season kicks in. (9) Currency markets were largely steady during the week.
References (writeups during past few weeks) :