Market Update 10/09/13

One line- Risk on attitude in the markets from good Chinese economic data and the possibility that Syria may be resolved without US military intervention.

- The Dow had its biggest gain since the 11 of July as strong Chinese export data from early Monday morning boosted US markets. http://www.bloomberg.com/news/2013-09-09/u-s-stock-index-futures-gain-as-chinese-exports-rise.html

- Positive Chinese industrial production and retail sales figures buoyed Asian markets overnight and European stocks to one month highs this morning. The aussie dollar also gained on the news. Adding to the risk on sentiment was an alternative solution to the Syria problem proposed by Putin for Assad to hand over his chemical weapons. Gold and oil fell on the news. http://www.ft.com/cms/s/0/852e7824-19c0-11e3-80ec-00144feab7de.html#axzz2eNo4QzxI

- Emerging stocks rose to three month highs on the Chinese data while currency gains in the rupee, the won and other emerging currencies pleased the respective central bankers. http://www.bloomberg.com/news/2013-09-10/emerging-stocks-rise-on-oil-as-china-h-shares-climb-20-from-low.html

- Japan will prepare a stimulus package to cushion the blow from the much talked about sales tax increase the finance minister Taro Aso said today. The decision on whether the sales tax increase will go ahead will be taken on the 1st of October. The yen continued to weaken yesterday.  http://www.bloomberg.com/news/2013-09-10/japan-prepares-stimulus-to-cushion-impact-of-sales-tax-increase.html

- George Osborne was bullish yesterday on the UK economy citing that the signs of growth were vindication of the austere policies that have been carried out. Treasury figures and business surveys suggest that the UK may be growing as quickly as 4% annualized at the moment. http://www.ft.com/cms/s/0/856b9566-1974-11e3-80ec-00144feab7de.html#axzz2eNo4QzxI

Data

S&P 1671.71 0.94%
FTSE 6581.75  0.78%
Nikkei 14,423.36 1.54%


EUR/USD- 1.3242 0.10%
USD/JPY- 100.04 0.46%
GBP/USD- 1.5705 0.06%

Gold- 1375.23 0.85%
Oil (Brent)- 113.22 0.44%
Copper- 325.90 0.58%

10 year yields
US- 2.94 (+2bps)
UK- 3.00 (+5bps)
Japan- 0.71 (-3bps)