Market Update 11/11/13

One line- risk on moves as positive Chinese industrial data and the US jobs report shrugs off tapering worries.

- Eurozone growth is expected to support the ECB decision to reduce rates last week, with GDP predicted to have grown by just 0.1% in the third quarter. Second quarter growth registered at 0.3% and ended the recession in the area. The data is to be released on the 14th of November beginning at 730am in Paris with a French report and finishing with the Euro area report at 11am in Luxembourg. http://www.bloomberg.com/news/2013-11-11/euro-zone-s-fizzling-growth-seen-to-back-draghi-cut-case.html

- The better than forecast US jobs report and positive Chinese industrial data rallied Asian stocks overnight while European stocks are up this morning. The markets reaction to the jobs report was contrary to market reactions over the last few months. The market took the job report on face value as a sign of positive US growth and portrayed no concerns on its effect on potential tapering. The Nikkei added 1.3% overnight while the FTSE is up 0.1% this morning. http://www.bloomberg.com/news/2013-11-11/europe-stock-index-futures-rise-on-china-production-data.html  http://www.bloomberg.com/news/2013-11-11/japanese-shares-advance-on-u-s-economic-optimism-weaker-yen.html

- Greek's coalition government survived a no confidence vote on Sunday defeating the challenge from the radical left wing Syriza party 153 votes to 124. http://www.ft.com/cms/s/0/2d3ff696-4a63-11e3-9a21-00144feabdc0.html#axzz2kKbaClVS

- A typhoon that swept through the Philippines has killed an estimated 10 000. The storm was one of the most powerful storms on record to make it to land, more than 9 million people have been affected while a huge international relief effort is under way.   http://www.bbc.co.uk/news/world-asia-24894529

- A deal with Iran is not far away according to France's foreign minister Laurent Fabius. His comments following the breaking down of negotiations yesterday between 6 world powers and Iran in Geneva. One of the main sticking points in the deal was the Arak heavy water reactor that Western diplomats fear could enrich enough uranium to create a nuclear bomb in the future. http://www.ft.com/cms/s/0/888ecb0a-4aac-11e3-8c4c-00144feabdc0.html#axzz2kKbaClVS

Data

S&P 1770.61 1.34%

FTSE 6718.39 0.15%
Nikkei 14,269.84 1.30%

EUR/USD- 1.3397 0.22%
USD/JPY- 99.12 0.07%
GBP/USD- 1.6011 0.04%

Gold- 1282.66 0.45%
Oil (Brent)- 105.48 0.34%

Copper- 326.30 0.28%

 

 

10 year yields

US- 2.75 (0bps)
UK- 2.79 (+2bps)
Japan- 0.59 (0bps)