One line- Slow trading day with the dollar gaining and US rates moving higher on speculation the US job report released today will make the case for tapering.
- US stocks were flat yesterday while Asian stocks were mixed. The Nikkei sold off while investors took profits ahead of the 2020 games announcement this weekend which Tokyo has made a bid for. The euro weakened as Draghi cited a very green recovery in Europe and the potential to bring rates further down. The dollar continued strengthening ahead of a jobs report today expected to make the case for tapering. http://uk.reuters.com/article/2013/09/06/uk-markets-global-idUKBRE87514J20130906
- European stocks are flat this morning coming off the back of a strong week. The Euro Stoxx 600 has gained 2.6% this week as positive PMI data from China, relief on Syria and a dovish Draghi drove gains. http://www.bloomberg.com/news/2013-09-06/european-stock-index-futures-are-little-changed.html
- The Indian rupee rallied as the new governor Raghuram Rajan unveiled plans to attract dollars from non resident Indians, to increase foreign borrowing by Indian banks and to free up the ability to make forward contracts. The rupee rallied 2%. http://www.ft.com/cms/s/0/67e91a3a-161e-11e3-a57d-00144feabdc0.html#axzz2duTDeNw6
- Fed tapering speculation pushed Treasury yields briefly above 3% yesterday. A service industries report showed the fastest growth in the sector since December 2005, far exceeding expectations. http://www.cnbc.com/id/101010399
- US crude oil prices jumped as inventories fell with the WTI gaining $1.31 yesterday to $108.54. http://www.ft.com/cms/s/0/296e18ca-1644-11e3-a57d-00144feabdc0.html#axzz2duTDeNw6
Data
S&P 1655.08 0.12%
FTSE 6519.34 0.20%
Nikkei 13,860.81 1.45%
EUR/USD- 1.3132 0.09%
USD/JPY- 99.59 0.52%
GBP/USD- 1.5581 0.06%
Gold- 1369.05 0.11%
Oil (Brent)- 115.03 0.03%
Copper- 327.05 0.82%
10 year yields
US- 2.98 (-1bps)
UK- 2.99 (-2bps)
Japan- 0.78 (+1bps)
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