Thursday, October 24, 2013

Morning Memo: Thursday, October, 24, 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...Mixed markets.  Many opened firmer on HSBC's Flash PMI estimate for China @ seven month high of 50.9 for October vs 50.2 in September.  Weaker Yen vs USD allowed the Nikkei (export sensitive) to rally a bit.
  • China...earlier market optimism on the HSBC PMI data was doused as 7-day repo rates continued to climb!  Concerns over liquidity and monetary tightening, repeating a spike in rates witnessed last Spring, put most markets back on their heels later in the session.
  • India...equity market trades near all-time high.  After cratering this past summer on tapering fears and the resultant impact on depressing the Rupee, talk of tapering being postponed, has given new life the Sensex, especially on foreign investor demand. The market is up over 8% ytd, most of that coming in the past month.
  • Europe....Eurozone PMI fell in October to 51.5 from September's 52.2.  Despite the drop, being above 50 (indicating expansion) for the fourth month in a row, the decline from Sept had only a small sobering impact on the markets.
  • Spain..Unemployment rate still close to 26% (25.98)!
  • Italy...Berlusconi faces new corruption charges, alleging he bribed a senator in '08 in efforts to join him in bringing down the then center-left govt.
  • US...Dept of Justice looking into 9 other banks re mortgage related activities, similar to the case against JPM that resulted in a $13Bn settlement earlier this week. 
  • 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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