Thursday, October 10, 2013

Morning Memo: Thursday, October 10, 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...late yesterday, word of a meetings planned today w/the President and House Republicans revived hope in the debt ceiling debate being resolved on time.  That took most Asia markets up. Also helping markets was the positive close in the US and the appointment of Yellen as Bernanke's successor.
  • Japan...rallied on weaker Yen and stronger than expected Machine Orders data for August.
  • China...lost ground ahead of upcoming inflation and trade data due out over the coming weekend and early next week.
  • Korea...Bank of Korea kept rates unched @ 2.5%, but lowered its inflation forecasts for this yr to 1.2% fr 1.7% and next to 2.5% fr 2.8% , while keeping GDP unched at 2.8% for 2013 but lowering it to 3.8% fr 4.0% in 2014. 
  • Indonesia...consumer confidence falls to lowest in over one year.
  • Europe...markets generally higher on hopes for US budget talks.
  • Italy...Industrial Output data was weaker than expected.
  • France....likewise.
  • UK..Bank of England announces policy decision today, with no change in 0.5% rate expected.
  • US...yesterday, Fidelity was reported to have sold all US Treasury Bills maturing near the debt ceiling date, while Pimco reportedly said they'd buy them all.  Evidence of the kind of angst, uncertainty and turmoil that the debt ceiling debate is having in markets.
  • Computers...late yesterday, Gartner reported that PC sales continued to decline in Q3 but at a slower pace, as US sales of PCs actually rose y/y.  The cannibalization of PCs by tablets, however, continues around the globe in both developed and developing markets.  Global PC shipments fell 9% y/y in Q3 to the lowest level in five years!
  • Brazil...yesterday, raised rates by 50bp to 9.5% in yet another attempt to support the currency and fight inflation.
  • Libya..the Prime Minister was kidnapped! This news hitting the wires in early hours. More to follow as details come out.
  • more later...
  • Later:
    • Kidnapped Libyan PM released.
    • Bank of England holds rates steady, as expected. 
    • European markets and US futures trading much stronger (7:17am ET) on hopes that today's meetings between President Obama and House Republicans will produce results.  Will the markets force a positive outcome?  Take note of this from the WSJ: 

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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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