Market Update 04/09/13

One line- Syria concern juxtaposed with positive manufacturing data in the US gave mixed outcomes across markets.

- European stocks declining before the Fed releases its economic survey outlook. The Aussie dollar climbed to a two week high on news that the nations economy accelerated unexpectedly last quarter. Asian stocks were mixed although the Nikkei continued its rally on the back of dollar strength gaining 0.5%. http://www.bloomberg.com/news/2013-09-03/asian-futures-drop-while-wti-holds-gain-on-syria-backing.html

- Crude oil and gold gained yesterday on the back of Syria speculation. US stocks and Treasuries retreated as a report showed a faster than expected increase in manufacturing. Ten year treasury yields added 8 basis points up to 2.86% while the S&P 500 gained 0.42%. http://www.bloomberg.com/news/2013-09-02/asian-futures-climb-as-yen-holds-slide-while-crude-drops.html

- US senators have reached a deal on a motion authorizing an attack on Syria setting a 60 day deadline for military action. The motion rules out the deployment of US forces in the area, allowing only for missile strikes. http://www.ft.com/cms/s/0/654f3846-149c-11e3-b3db-00144feabdc0.html#axzz2duTDeNw6

- The Indian rupee has staged a sharp rebound after suspected heavy dollar selling by the central bank. The currency strengthened 0.6% to 67.23 but has slid 20% vs the dollar year to date. Raghuram Rajan begins his post today as head of the Reserve Bank of India. http://uk.reuters.com/article/2013/09/04/uk-india-economy-rupee-idUKBRE98306820130904

Data
S&P 1639.77 0.42%
FTSE 6453.79  0.23%
Nikkei 14,053.87 0.54%
EUR/USD- 1.3170 0.00%
USD/JPY- 99.57 0.00%
GBP/USD- 1.5579 0.14%

Gold- 1408.94 0.25%
Oil (Brent)- 115.71 0.03%
Copper- 326.70 1.13%

10 year yields
US- 2.87 (+1bps)
UK- 2.88 (0bps)
Japan- 0.76 (0bps)