Market Update 19/11/13

One line- Markets mixed as investors take profits in developed markets while emerging markets continue to rally. 

- The Chinese pledge for reform is driving Asia ex Japan markets as the Hang Seng added 0.7%. Profit taking in Japan was seen as the Nikkei lost 0.25% having rallied 7.7% last week. Wall Street posted fresh new highs before selling off with the S&P touching 1800 and the Dow Jones exceeding 16000. http://www.ft.com/cms/s/0/38a01804-50c6-11e3-9f0d-00144feabdc0.html#axzz2kzQ4lqxa

- European shares opened sharply down this morning as investors show caution following the Stoxx 600 reaching record highs. The FTSE is down 0.6% this morning. Energy and metals are broadly down this morning while the dollar is selling off ahead of a speech later today by Bernanke. Bernanke is expected to make the case for the continuation of current monetary policy. In the past month the dollar has climbed 1.9% while the euro has gained  0.5%. http://www.bloomberg.com/news/2013-11-19/european-stock-index-futures-drop-kbc-groep-may-move.html  http://www.bloomberg.com/news/2013-11-19/dollar-near-two-week-low-versus-euro-as-fed-delays-taper-hopes.html

- The Iranian embassy in Beirut has been rocked by two explosions with a death toll of 18. There is no word on who is behind the blasts but Syrian rebels have threatened action in Lebanon against Assad's allies. Iran supports Hezbollah that has a stronghold in the area as well as the Syrian government with military and economic support. http://uk.reuters.com/article/2013/11/19/uk-lebanon-blast-idUKBRE9AI08E20131119

-  Emerging stocks rose for a fourth day as consumer and technology companies rallied, the won and the rupee strengthened. China's plans for reform has rallied the MSCI Emerging markets index by 5% in the last 4 days. The index has lost 2.5% this year and trades at 10.8 times projected earnings. http://www.bloomberg.com/news/2013-11-19/emerging-stocks-rise-for-fourth-day-as-won-reaches-two-year-high.html

- Figures close to the matter say JP Morgan has agreed to settle the $13 billion over Washington Mutuals past indiscretions, the biggest settlement in history by a single company for the department of justice. Washington Mutuals miss-selling of mortgage securities is what has caused the settlement. JP Morgan has reserved the right to try and recover the costs in two recent deals with the Federal Finance Agency and with 21 private investors. http://www.ft.com/cms/s/0/f11b2e2e-507f-11e3-9f0d-00144feabdc0.html#axzz2kzQ4lqxa

Data

S&P 1791.53 0.37%

FTSE 6687.98 0.53%
Nikkei 15,126.56 0.25%

EUR/USD- 1.3514 0.06%
USD/JPY- 99.75 0.24%
GBP/USD- 1.6093 0.10%

Gold- 1275.66 0.02%
Oil (Brent)- 108.10 0.34%

Copper- 315.60 0.14%

 

 

10 year yields

US- 2.68 (+2bps)
UK- 2.74 (+2bps)
Japan- 0.62 (0bps)