Market Update 06/11/13

One line- Markets mixed with rates trending higher along with equities and industrial metals.

- US stocks sold off marginally yesterday while Asian and European markets are bullish. The Nikkei added 0.8% while the Stoxx 50 is up 0.7% this morning. The dollar index retreated 0.2% ahead of the jobs report later in the week. US ten year's are continuing their upward trend hitting 2.67%. There are signs of risk appetite in commodities with industrial commodities gaining along with gold. The market is supported by an expected weak job report and dovish ECB. http://www.ft.com/cms/s/0/ab9bbc6e-468f-11e3-9487-00144feabdc0.html?siteedition=uk#axzz2jrLA0UDC

- Weak Eurozone inflation and a cut in the economic forecast for the area is encouraging speculation of a rate cut for the area. The euro lost 2.3% against the dollar last week its biggest weekly decline since July 2012. http://www.ft.com/cms/s/0/e4f8c082-457d-11e3-b98b-00144feabdc0.html#axzz2jrLA0UDC

- Brussels is readying to levy multi billion dollar fines on banks that engaged in Euribor and Libor manipulation, RBS, Deutsche Bank and Soceite Generale are set to pay fines next month to settle allegations. JP Morgan, HSBC and Credit Agricole are involved in talks but are holding out from sigining a Euribor settlement. http://www.ft.com/cms/s/0/8a6a4b02-463d-11e3-9487-00144feabdc0.html#axzz2jrLA0UDC

- New York has elected its first Democratic mayor in nearly 25 years. Bill de Blasio won a landslide victory on Tuesday with a campaign criticizing incumbent Michael Bloomberg's inability to deal with rising inequality in the city. Registered Democrats outnumber Republicans 6 to 1 in the city. Blasio has pledged to be hard on the financial sector and to raise taxes on those earning more than $500 000.http://www.ft.com/cms/s/0/fe4de0e6-462a-11e3-b495-00144feabdc0.html#axzz2jrLA0UDC

- Sharp downward price moves in WTI reflect the effect of the shale gas revolution and the fact that the US has a self imposed ban on exporting crude allowing supply to build up in the country. The US allows itself only to export to Canada where a record amount of crude is currently being shipped. http://www.ft.com/cms/s/0/277402a4-464c-11e3-a0c0-00144feabdc0.html#axzz2jrLA0UDC http://www.ft.com/cms/s/0/170dc1c0-358f-11e3-952b-00144feab7de.html#axzz2jrLA0UDC

Data

S&P 1762.97 0.28%

FTSE 6753.29 0.10%
Nikkei 14,337.31 0.79%

EUR/USD- 1.3507 0.24%
USD/JPY- 98.62 0.12%
GBP/USD- 1.6101 0.34%

Gold- 1317.26 0.43%
Oil (Brent)- 106.18 0.81%

Copper- 327.20 0.41%

 

 

10 year yields

US- 2.65 (-1bps)
UK- 2.72 (+2bps)
Japan- 0.60 (+1bps)