Market Update 26/09/13

One line- Mixed picture with the US selling off on debt talk worries while Asian markets rallied on speculation that Japanese policy makers will study a corporate tax cut.

- US stocks continued to sell off yesterday as the markets focus on upcoming US debt talks. Asian equities led by Japanese shares climbed on speculation that the government will study a corporate tax cut. http://www.bloomberg.com/news/2013-09-26/asian-stocks-fall-third-day-trimming-monthly-advance.html

- European stocks were little changed this morning as investors await significant news with regard to tapering or the US debt ceiling. http://www.bloomberg.com/news/2013-09-26/europe-stock-index-futures-little-changed-before-data.html

- Emerging stocks fell to a one week low while the Brazilian real posted the biggest decline in a month. The sell off trimmed its September advance to 8.4%. A private survey showed yesterday that China's economy slowed last quarter with manufacturing and transport growth experiencing a drop in activity. http://www.bloomberg.com/news/2013-09-25/emerging-stocks-fall-to-one-week-low-on-u-s-demand-rupiah-drops.html

- The pound appreciated against the dollar and is approaching an 8 month high ahead of GDP figures to be released today. Economists predict the UK economy grew 0.7% in the three months through June.
http://www.bloomberg.com/news/2013-09-26/pound-about-0-5-from-eight-month-high-before-u-k-growth-report.html

- McKinsey & Co. see the global commodity super cycle continuing as supply constraints and demand from emerging markets is likely to push prices higher. The report states that energy, metal and agriculture prices that more than doubled since 2000 are still close to highs that they reached before the financial crisis.
http://www.bloomberg.com/news/2013-09-25/commodity-constraints-show-super-cycle-endures-mckinsey-says.html

Data

S&P 1692.77 0.27%
FTSE 6543.55  0.12%
Nikkei 14,799.12 1.22%

EUR/USD- 1.3509 0.13%
USD/JPY- 98.64 0.21%
GBP/USD- 1.6049 0.20%

Gold- 1337.67 0.25%
Oil (Brent)- 108.52 0.18%

Copper- 330.05 0.87%

10 year yields
US- 2.64 (+1bps)
UK- 2.75 (-1bps)
Japan- 0.68 (+1bps)