Thursday, September 12, 2013

Morning Memo: Thursday, September 12, 2013

"Morning Memo" begins below this "NOTE for  NEWCOMERS" to "Morning Memo"...... Each morning, we post a short bullet-point list of noteworthy events, data, etc that find their way into the assessment of global markets.  It's far from complete and is not meant to be an exhaustive reconciliation of all things that could possibly impact stocks, bonds, currencies and commodities!  Rather, it's best viewed as a cryptic memo of "highlights", noteworthy items that took place in Asia, European and US hours.....and color-coded 'Red' for seemingly negative impact on equity markets, 'Green' for positive.
This will also serve as a useful review mechanism, as scrolling through the series of "Morning Memo" posts over time ought to summarily highlight what generally drove price action.  

We hope you find this useful and informative....and as always, that you'll share feedback!!

5:15am ET...
  • Asia...mixed session, as Nikkei closed slightly lower and Australia held near the previous day's levels (which were 5-yr highs) despite worse than expected employment data.  Australia showed more job losses than expected.  The AUD fell on the news.
  • South Korea..holds rates steady, as expected @ 2.5%.
  • Japan...the implementation of a sales tax, as part of PM's Abe's overall economic plan, appears to be center focus as the market reacts to rumors as to whether it wil or will not come to be.
  • Indonesia..hiked rates 25 bps to 7.25%!  Unexpected!!  Comes two weeks after previous rate hike, both aimed at supporting their currrency, the Rupiah.
  • European markets mixed in early trading ahead of talks by US Secy of State Kerry and Russia's Foreign Minister over Syria.
  • UK..Bank of England head Carney will be questioned by MPs today re the UK economy and monetary policy.  This is being watched closely on the heels of yesterday's better than expected drop in unemployment, a data point that Carney's 'forward guidance' on policy is built around.
  •  Company news with possible broader market implications:
    • Apple (AAPL)...the negative reaction to the new release (iPhone 5c) cont'd yesterday w/the stock down 5%.  In Asia hours, related companies in Apple's supply chain were hurt as well.
    • Qualcomm (QCOM)...after the close, announced a $5B stock buyback, which might support an otherwise pressured technology sector.
    • Verizon (VZ)..successfully completed a $49B bond sale with maturities across the curve out to 30yrs, and extremely oversubscribed: evidence of cont'd investor demand for yield. Could lead to even more corporate issuance, beyond the already record pace of 2013.
  • Jobless Claims....drops below 300k but blamed on computer-related glitches.
  • more later....

Please continue to visit Soos Global Market Musings for updates.
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(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
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Additional Disclaimer: currently long many stocks/ETFs incl VZ, QCOM.  Positions may change at any time without notice.

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