Market Update 24/09/13

One line- Risk off session in the markets as the focus shifts to US budget talks.

- US stocks fell amid Fed speeches as the S&P had the longest retreat in a month. The index sold off 0.47% with banks leading the decline. A report released yesterday forecast a 20% drop in fixed income revenues for the banks. The Fed speeches gave investors mixed signals with 2 officials presenting opposing cases for tapering in the near term.http://www.bloomberg.com/news/2013-09-23/u-s-stock-index-futures-are-little-changed-on-china-pmi.html

- Asian stocks fell from a four month high as focus shifts to the upcoming US budget talks. The Topix slid 0.3% while the Shanghai Composite fell 0.6%. http://www.bloomberg.com/news/2013-09-24/asia-stocks-fall-from-4-month-high-amid-u-s-budget-talks.html

- European stocks erased gains this morning as German data on business confidence missed forecasts. The German IFO index missed the 108 that was forecast reading 107.7. The Stoxx Europe 600 index sold off 0.1% this morning. http://www.bloomberg.com/news/2013-09-23/australian-futures-fall-as-u-s-stocks-drop-crude-slides.html

- The dollar reversed a two day advance against the euro as investors shift focus to the US debt talks. The currency is set for a 3.7% decline vs the euro for the quarter driven by improving European economic data and the tapering decision. The aussie dollar also dropped adding to general risk off moves. http://www.bloomberg.com/news/2013-09-23/dollar-holds-drop-as-shutdown-looms-fed-stimulus-damps-demand.html

- WTI traded near a 6 week low as the Syria situation has subsided and as traders speculate a UN resolution will be passed this week. http://www.bloomberg.com/news/2013-09-23/crude-trades-near-six-week-low-as-middle-east-concern-eases.html

Data

S&P 1701.84 0.47%
FTSE 6562.76  0.08%
Nikkei 14,732.61 0.07%

EUR/USD- 1.3494 0.01%
USD/JPY- 99.10 0.25%
GBP/USD- 1.5983 0.37%

Gold- 1319.20 0.27%
Oil (Brent)- 108.03 0.12%

Copper- 326.65 0.97%
10 year yields
US- 2.69 (-1bps)
UK- 2.87 (-4bps)
Japan- 0.67 (-1bps)