Market Update 13/09/13

One line- Investors take profit following the equity rally early in the week and ahead of the FOMC meeting on the 17th and 18th.

- Tapering concern and weak eurozone industrial production figures caused global stocks to fall with the S&P losing 0.3% while the FTSE Asia Pacific index lost 0.5%. The dollar index showed strength gaining 0.2%. The Nikkei was amongst a few that gained adding 0.12% on the back of a weaker yen. http://www.ft.com/cms/s/0/05c26080-1c24-11e3-b678-00144feab7de.html#axzz2eNo4QzxI

- European stocks retreated this morning as investors await a report on US retail sales. The report is expected to show that US retail sales increased at a faster pace in August than July. http://www.bloomberg.com/news/2013-09-13/european-stock-futures-little-changed-fresenius-may-move.html

- Chinese shares led emerging stock losses paring the biggest weekly advance since June. Sentiment on the emerging markets has quickly reversed as investors look for brighter growth prospects in the US, Japan and Europe. Indian markets have been judged to have the worst outlook followed by Brazil, Russia and China. http://www.bloomberg.com/news/2013-09-13/emerging-stocks-trim-best-weekly-gain-since-june-on-china-slump.html

- Treasury yields rose as the Nikkei, a business newspaper in Japan, reported that Summers was to be named the next Federal Reserve chairman without naming a source. 10 year yields moved to 2.94% as the market views Summers as hawkish.  http://www.bloomberg.com/news/2013-09-13/u-s-2-10-year-spread-is-near-widest-since-11-on-policy-outlook.html

- Gold slumped to a 5 week low as receding Syria concerns and tapering expectation caused the biggest weekly decline since June. http://www.bloomberg.com/news/2013-09-13/gold-heads-for-worst-weekly-loss-since-june-as-fed-seen-tapering.html

Data

S&P 1683.42 0.34%
FTSE 6567.75  0.32%
Nikkei 14,404.67 0.12%

EUR/USD- 1.3289 0.08%
USD/JPY- 99.66 0.12%
GBP/USD- 1.5810 0.03%

Gold- 1312.02 0.73% 
Oil (Brent)- 112.33 0.27%Copper- 320.50 0.16%

10 year yields
US- 2.93 (+2bps)
UK- 2.96 (+2bps)
Japan- 0.72 (0bps)