Market Update 25/09/13

One line- Risk off mood continues in the markets as budget talks loom ahead.

- US stocks fell yesterday as upcoming budget talks came into focus and US consumer confidence was shown to be at a 4 month low. The S&P sold off 0.3% while home builders gained 2.3% after a report showed home prices increased by the most in 7 years. http://www.bloomberg.com/news/2013-09-24/u-s-stock-index-futures-little-changed-red-hat-declin
es.html

-  Asian stocks fell for a second day on the US consumer confidence news paring the gains made last week on the Fed announcement. The Nikkei slid 0.76%. http://www.bloomberg.com/news/2013-09-25/asian-stocks-fall-second-day-as-u-s-confidence-declines.html

- European equities slid this morning continuing the sell off from Asia and the US as the market shifts focus to the US budget talks. US Treasury Secretary Jacob Lew said investor confidence that a deal can be struck is "greater than it should be". http://www.bloomberg.com/news/2013-09-25/most-asian-stocks-decline-with-currencies-as-commodities-rebound.html

- The yen gained against most of its peers with its safe haven status driving the strength. The dollar was little changed ahead of new home sales data. http://www.bloomberg.com/news/2013-09-24/dollar-holds-gains-as-budget-talks-spur-haven-appeal-kiwi-drops.html

- Angela Merkel's Christian Democrat party ruled out forming a coalition with the Green party making it almost certain that a centre right-centre left "grand coalition" will be formed. http://uk.reuters.com/article/2013/09/24/uk-germany-election-idUKBRE98N0QG20130924

Data

S&P 1697.42 0.26%
FTSE 6563.34  0.12%
Nikkei 14,620.53 0.76%

EUR/USD- 1.3497 0.17%
USD/JPY- 98.53 0.22%
GBP/USD- 1.5992 0.08%

Gold- 1321.16 0.16%
Oil (Brent)- 109.08 0.41%

Copper- 326.55 0.28%

10 year yields
US- 2.64 (-1bps)
UK- 2.78 (-1bps)
Japan- 0.66 (0bps)