Market Update 27/09/13

One line- Positive US jobless claims data drove markets higher but budget talks loom ahead.

- US stocks reversed a five day losing streak yesterday as an unexpected drop in jobless claims pushed the S&P up 0.3%. http://www.bloomberg.com/news/2013-09-26/u-s-stock-futures-rise-after-five-day-slide-for-s-p-500.html

- US jobless claims data and data showing Japan is experiencing its highest inflation since 2008 drove Asian markets higher overnight. Inflation in Japan was 0.8%. The Asia MCSI index added 0.3% although the Nikkei sold off 0.26% as the yen appreciated. http://www.bloomberg.com/news/2013-09-27/asia-stocks-set-for-best-monthly-gain-since-sept-2010.html

- Ahead of a report today on economic confidence in the euro area european equities are flat having had a similar day yesterday. http://www.bloomberg.com/news/2013-09-27/europe-stock-index-futures-little-changed-before-data.html

- Gold swung between gains and losses as investors considered how the unexpected drop in US jobless claims would affect the Fed's decision to taper. http://www.bloomberg.com/news/2013-09-27/gold-extends-weekly-drop-as-jobless-claims-boost-fed-taper-bets.html

- The pound headed to an 8 month high vs the dollar as Mark Carney told a UK newspaper he saw no need for further stimulus. The yen strengthened as worries about US budget talks drove its safe haven status. http://www.bloomberg.com/news/2013-09-26/dollar-poised-for-weekly-advance-before-consumer-data-fed-speak.html

Data

S&P 1698.67 0.35%
FTSE 6544.86  0.32%
Nikkei 14,760.07 0.26%

EUR/USD- 1.3502 0.10%
USD/JPY- 98.61 0.38%
GBP/USD- 1.6080 0.24%

Gold- 1326.07 0.15%
Oil (Brent)- 108.92 0.27%

Copper- 330.95 0.08%

10 year yields
US- 2.65 (0bps)
UK- 2.74 (-1bps)
Japan- 0.67 (-2bps)