Market Update 11/09/13

One line- Risk on attitude in markets on the back of Chinese data and a reduction in Syria concerns however the focus is shifting back to tapering.

- Obama has decided to put off a vote to Congress regarding military action in Syria while a diplomatic initiative is pursued in the UN with Russia. The initiative would remove chemical weapons from Syria without the use of force. http://www.ft.com/cms/s/0/91e7242a-1a7f-11e3-b3da-00144feab7de.html?siteedition=uk#axzz2eNo4QzxI

- US stocks rallied yesterday following the positive Chinese economic data and the Syrian proposal. The S&P added 0.7%. Goldman Sachs, Visa and Nike all rallied as they were to be added to the Dow Jones at the expense of Bank of America, Hewlett-Packard and Alcoa.http://www.bloomberg.com/news/2013-09-10/u-s-stock-futures-gain-on-chinese-industrial-output-data.html

- The Nikkei finished flat yesterday giving back early gains on the session as the yen strengthened. European stocks were little changed this morning. A dampening of risk appetite seems to be occurring as traders are wary to add to long bets with a potential tapering announcement next week. Oil markets were volatile yesterday as they interpreted the new potential solution to Syria with Brent finishing up 0.3%. http://www.ft.com/cms/s/0/5ec935b8-1a90-11e3-b3da-00144feab7de.html#axzz2eNo4QzxI  http://www.bloomberg.com/news/2013-09-11/european-stock-futures-little-changed-after-syria-delay.html

- Gold touched a three week low as tapering concerns and reduced Syria worries have weighed on the metal. The metal has lost 4.8% since the end of August declining to $1367.95. http://www.bloomberg.com/news/2013-09-11/gold-fluctuates-as-obama-steps-back-from-strike-against-syria.html

- The dollar reversed a three day decline against the euro ahead of a talk tomorrow by William Dudley the head of the Federal Reserve Bank of NY. The aussie dollar weakened before an economic report tomorrow that economists expect will show an increase in unemployment. http://www.bloomberg.com/news/2013-09-10/yen-near-7-week-low-as-syria-tensions-ease-before-fed-s-dudley.html

Data

S&P 1683.99 0.73%
FTSE 6578.12  0.09%
Nikkei 14,425.07 0.01%


EUR/USD- 1.3269 0.01%
USD/JPY- 100.22 0.17%
GBP/USD- 1.5773 0.25%

Gold- 1367.21 0.24%
Oil (Brent)- 112.35 0.99%
Copper- 327.90 0.51%

10 year yields
US- 2.94 (-2bps)
UK- 3.01 (+5bps)
Japan- 0.73 (-1bps)