Manufacturing data in July next trigger for mkts -:- Equity Research

Post Brexit, markets have seen volatility, but have recovered well in the last few trading sessions. There is enough liquidity which is pushing this rally, says Sameer Goel, Head of Asia Rates & Currency Research at Deutsche Bank. Repercussions of the UK Referendum and what it means for politics in the Europe will be closely watched. However, the economic backdrop continues to remain weak. The next trigger for global markets will be manufacturing and Purchasing Managers’ Index (PMI) numbers in July, says Goel. Deutsche Bank expects sterling to remain weak in the medium-term while it is bullish on the dollar. For currencies, too, the next leg of growth data will be crucial. On India, Goel says that it will be harder for Indian assets to benefit much from the global rally as concerns over growth stays. Worries over the Reserve Bank’s successor too remain a constraint for growth.