Market Update 05/12/13

One line- Risk off moves ahead of non farm payrolls report on Friday. 

- Global stocks are selling off ahead of the non-farm payroll report on Friday which investors are fearing may make the case for an earlier tapering than expected. The S&P lost 0.1%  while the Nikkei lost 1.5% overnight. Treasury yields are trending higher closing overnight at a near two month high of 2.84%. Commodities are broadly flat, in FX the dollar is down against its major crosses. Positive news in India rallied the Sensex rallied 1.1% along with the rupee. The Hindu nationalist party has been making gains in the polls ahead of next years election. http://www.ft.com/cms/s/0/30ccc034-5d5d-11e3-81bd-00144feabdc0.html?siteedition=uk#axzz2mUvBwAtP

- Joe Biden told Chinese president Ji Xinping that the US does not recognise their air defence identification zone and that China needs to "take steps to reduce the risk of accidental conflict and miscalculation". He stopped short though of telling the Chinese to abolish the zone. He also brought up the maltreatment of journalists of the Times and Bloomberg, who following a report on the build up of wealth of those in power in China have been refused visas. http://www.ft.com/cms/s/0/4ddf36ae-5d5b-11e3-a558-00144feabdc0.html#axzz2mUvBwAtP

- In a speech in one of the poorer districts of Washington Barack Obama said inequality is the defining issue of our time and called for a rise in the federal minimum wage. In the 50 minute speech he chronicled the decline in relative incomes since the 1970s and defended the role of government in alleviating the problems. http://www.ft.com/cms/s/0/0cf55624-5d0f-11e3-a558-00144feabdc0.html#axzz2mUvBwAtP

- In Ukraine the prime minister said late on Wednesday his government was prepared to discuss snap elections in a move designed to bring an end to the ongoing protests. The comments come after the opposition leaders appealed to European powers to intervene as the stand-off threatens to cause a financial crisis. The Ukrainian hryvnia is down to a 2009 low while its bond yields have soared. http://www.ft.com/cms/s/0/3d2630cc-5d0d-11e3-a558-00144feabdc0.html#axzz2mUvBwAtP

Data

S&P 1792.81 0.13%

FTSE 6510.33 0.01%
Nikkei 15,177.49 1.50%

EUR/USD- 1.3598 0.04%
USD/JPY- 102.07 0.28%
GBP/USD- 1.6351 0.20%

Gold- 1233.10 0.86%
Oil (Brent)- 111.98 0.09%

Copper- 323.45 0.45%

 

10 year yields

US- 2.84 (0bps)
UK- 2.89 (-1bps)
Japan- 0.62 (0bps)