Market Update 29/10/13

One line- Markets mixed as Chinese money markets stabilized and traders look ahead to Fed meeting result tomorrow.

- Markets are mixed following the relief rally yesterday and ahead of the result of the Federal Reserve meeting tomorrow. The dollar index is up 0.2% while industrial commodities are down. The aussie dollar is down 0.6% as the RBA governor Glenn Stevens, voiced his concern at the currency's strength. In Japan a 0.1% drop in unemployment to 4% and a 3.1% gain for retail sales caused yen strength and the Nikkei to lose 0.5%. US stocks were basically flat for the day while European stocks are up this morning as BP raises its dividend. http://www.ft.com/cms/s/0/81bfdb84-4048-11e3-8882-00144feabdc0.html?siteedition=uk#axzz2j0eXHBC8

- China's money rates stabilized after the central bank resumed open market operations for the first time since October 15th. The bank injected $2.13 billion into the market via open market operations. The overnight repo rate fell 3bps to 4.52%. http://www.reuters.com/article/2013/10/29/us-markets-china-bonds-idUSBRE99S04G20131029

- The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 7.75% as the CPI measure 9.84% and GDP growth of 4.4%. The move was in line with expectations and the rupee strengthened on the day. http://www.reuters.com/article/2013/10/29/us-india-economy-cbank-idUSBRE99S05V20131029

- As Iran attempts to fix its battered economy it is offering oil companies more profitable contracts in the region. The ongoing high level talks about the country's nuclear programme give hope that the US sanctions can be lifted. Iran is looking to attract $100bn in investment in the next 3 years. Iran has the world's largest gas reserves and fourth largest oil reserves. http://www.ft.com/cms/s/0/8c55893a-3fe5-11e3-8882-00144feabdc0.html#axzz2j0eXHBC8

- Deutsche Bank's profit fell 94% following a fall in income from debt trading and money put aside for legal costs. Net income in the three months through September fell to 41 million euros from 747 million in the year earlier period. The figure undershot analysts estimates by 400 million euros. The shares are down 3.3% this morning. http://www.bloomberg.com/news/2013-10-29/deutsche-bank-profit-falls-94-as-trading-revenue-slumps.html

Data

S&P 1762.11 0.13%

FTSE 6750.51 0.37%
Nikkei 14,325.98 0.49%

EUR/USD- 1.3757 0.20%
USD/JPY- 97.61 0.07%
GBP/USD- 1.6095 0.29%

Gold- 1345.98 0.49%
Oil (Brent)- 109.17 0.40%

Copper- 328.25 0.41%

 

 

10 year yields

US- 2.51 (-1bps)
UK- 2.59 (-1bps)
Japan- 0.60 (-1bps)