Markets Update
One line- Risk off moves as expectations about military action in Syria drove markets.

- The US is likely to launch cruise missiles from the Mediterranean in response to Assad's use of chemical weapons. Strikes are unlikely until UN inspectors who are still gathering evidence leave the area.  http://uk.reuters.com/article/2013/08/28/uk-syria-crisis-idUKBRE97K0AJ20130828

- Global stocks slid and oil rose (Brent 115.5) on Syria speculation. The S&P sold off 1.6% and the Nikkei dropped 1.5% overnight. Gold climbed 0.8% as the Dollar also strengthened and copper fell 0.5% to $7277. http://www.bloomberg.com/news/2013-08-27/asian-futures-slump-as-u-s-stocks-slide-syria-fuels-oil.html

- Emerging market currencies continued selling off as concern about Syria and tapering drove the Lira and Rupee to fresh lows. The Turkish central bank has promised not to raise rates again this year from 7.75% despite facing inflation of 8.8%. http://www.ft.com/cms/s/0/e4483934-0fb7-11e3-99e0-00144feabdc0.html#axzz2d6JdcLZe

- US bond yields have fallen as two weak data points have forced the market to consider that tapering may not occur this year. Durable goods data and housing data were both disappointing. 10 year yields have moved from 3% last week to 2.78% yesterday although some of this movement is likely part of the risk off move driven by speculation on Syria. http://www.ft.com/cms/s/0/819136e8-0ef3-11e3-8e58-00144feabdc0.html#axzz2d6JdcLZe

Data:
S&P 1630.48 1.59%
FTSE 6417.4  0.37%
Nikkei 13,338.46 1.51%

EUR/USD- 1.3346 0.35%
USD/JPY- 97.4 0.38%
GBP/USD- 1.5461 0.55%

Gold- 1422.71 0.53%
Oil (Brent)- 115.25 0.78%
Copper- 331.1 0.73%

10 year yields
US- 2.73 (+2bps)
UK- 2.76 (-2bps)
Japan- 0.71 (-2bps)