Market Update 30/08/13

One line- US posts positive growth data while the UK votes not to get involved in Syria, dollar gold oil weaken, stocks gain.

- US stocks rose as Syria concerns eased and the country beat growth estimates with 2.5% annualized growth compared with 2.2% that was predicted for Q2. http://www.bloomberg.com/news/2013-08-29/u-s-stock-index-futures-advance-before-gdp-jobless-data.html

- David Cameron was the first Prime Minister in at least 150 years to lose a parliamentary vote on military action. 10% of Conservatives and 16% of Liberal Democrats voted against the proposal. The proposal means that the UK will play no part in the response to Assad's use of chemical weapons. It was defeated 285 votes to 272. http://www.bloomberg.com/news/2013-08-29/historic-vote-sees-cameron-defeated-by-lawmakers-on-syria.html

- Asian stocks swung from losses to gains as the result of the UK vote on attacking Syria was decided. The Kopsi added 1% the Sensex 1% and the Taiex 1.3%. Japanese inflation hit an almost 5 year high of 0.7% in July but if energy costs are not included in the measure the figure would be deflationary by 0.1%. The Nikkei dropped 0.5% yesterday. http://www.bloomberg.com/news/2013-08-30/asia-shares-rise-as-japan-u-s-data-boost-global-growth-outlook.html http://www.ft.com/cms/s/0/c4fe8f7e-1106-11e3-b5e4-00144feabdc0.html#axzz2d6JdcLZe

- European stocks fell this morning with Euro area confidence data to be released today. Traders are wary to take on positions as uncertainty about Syria continues. http://www.bloomberg.com/news/2013-08-30/european-stock-index-futures-are-little-changed.html

- The Dollar weakened vs EM currencies as the Rupee strengthened 3.3% and the Lira strengthened 0.4%. This is a continuation of the reversal of the safe haven move we saw on Wednesday. Gold continued its decline from Thursday and oil dropped following the UK vote. http://www.ft.com/cms/s/0/9dcc1f94-1083-11e3-b291-00144feabdc0.html#axzz2d6JdcLZe

Data:
S&P 1638.17 0.11%
FTSE 6453.03  0.46%
Nikkei 13,388.86 0.53%

EUR/USD- 1.3246 0.04%
USD/JPY- 98.00 0.36%
GBP/USD- 1.5506 0.01%

Gold- 1396.66 0.79%
Oil (Brent)- 115.19 0.03%
Copper- 324.95 0.34%

10 year yields
US- 2.76 (0bps)
UK- 2.76 (-1bps)
Japan- 0.71 (+1bps)