Monday, October 7, 2013

Morning Memo: Monday, October 7, 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!!

5:00am ET...

  • Asia...Markets broadly lower on stalled US budget talks!  No progress over the weekend on re-opening the US gov't, and looming debt ceiling deadline, keeping tensions in global markets high.
  • Nikkei down over 1% to a one month low.  An early rally fueled by rumors that Japan's Government Pension Investment Fund would increase it's allocation to growth stocks, faded as the Yen strengthened (which generally hurts the Nikkei due to the impact on exporters).The Prime Minister also indicated that key labor market reforms might be stalled.
  • China's Shanghai closed for last day of holiday. 
  • Taiwan...exports fell more than 7%, more than expected, in September, indicating weaker demand for Taiwan's consumer electronic products.
  • World it's semi-annual economic report, lowered their growth forecast for East Asia developing nations due to weak commodity prices, slowing consumer demand and China's move to boost their own domestic demand vs exports.
  • Europe...following Asia lower in early hours, down broadly, largely on concerns over US budget impasse.
  • geopolitical risks were elevated as the US ramped up operations against terrorists in Africa this weekend w/raids in Libya and Somalia. 
  • Earnings season begins this week w/Alcoa on Tuesday.
  • 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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