MORNING NEWS CALL

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REUTERS INDIA EDITION Monday, July 3, 2017

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MORNING NEWS CALL - INDIA EDITION July 3, 2017

U.S. warship in operation near disputed island in South China Sea A U.S. warship sailed near a disputed island in the South China Sea claimed by China, Taiwan and Vietnam on Sunday in an operation meant to challenge the competing claims of all three nations, a U.S. Defense Department official said. Japan firms most upbeat in 3 years but labour shortages weigh - BOJ tankan Confidence among Japan's big manufacturers hit its highest level in more than three years in the June quarter, a closely-watched central bank survey showed, adding to signs the recovery in the world's third largest economy is gaining pace. STATE OF THE MARKETS The SGX Nifty Futures were at 9,524.00, up 0.08 percent from previous close. The Indian rupee will likely edge lower against the dollar in early trade, tracking a shift in appetite for risk assets after major central banks signaled likely tightening in monetary policies in coming months. -NewsRise Indian government bonds are likely to fall today after the Reserve Bank of India announced a surprise open market sale of debt this week. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.51 percent-6.57 percent band today. -NewsRise Major U.S. stock indexes ended a volatile week on a modestly high note on Friday, led by a surge in Nike shares, and the S&P 500 scored its biggest gain for the first half of the year since 2013 while the Nasdaq Composite's first-half gain was its best in eight years. Asian stocks held two-years highs, starting the new month on a solid footing after two quarters of gains while expectations of credit tightening by the world's major central banks kept global bond markets under pressure. The dollar edged off from a nine-month low against a basket of currencies, but it remained shaky as signs central banks in Europe were moving away from accommodative monetary policies kept the euro and sterling well bid. U.S. Treasury yields rose on Friday as inflation data was not seen as weak enough to delay the Federal Reserve’s expected path on interest rate hikes, and as investors worried about less accommodative central banks in Europe. Oil prices edged up, supported by the first fall in U.S. drilling activity in months, although rising output from OPEC despite a pledge to cut supplies capped gains. Gold held steady, ahead of the U.S. Independence day holiday, as the dollar hovered at near nine-month lows hit last week on signs of monetary tightening by global central banks.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 64.69/64.72 June 30 -- $11.77 mln

10-yr bond yield 6.87 Month-to-date $385.27 mln $4.56 bln

Year-to-date $8.37 bln $18.00 bln

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MORNING NEWS CALL - INDIA EDITION July 3, 2017

PICTURE OF THE DAY

Villagers use a makeshift bamboo bridge to move across flooded areas of Morigaon district in the northeastern state of Assam, July 2. REUTERS/Anuwar Hazarika

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