Thursday, October 31, 2013

Morning Memo: Thursday, October 31, 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....lower across the board after yesterday's FOMC statement was viewed as less dovish than had been expected.  Talk of a December tapering is not off the table.  The overall statement was in line w/September's statement, but market participants had raised hopes that the Fed would view the economy as being even weaker now, and therefore would push tapering further down the road.  Did not happen.
  • Japan..BOJ left policy unched, as expected.  Raised GDP forecasts for '14 to 1.5% fr 1.3% as expected, but left inflation expectations at 1.9% for '15 excl the new consumption tax effect, which appeared to disappoint the markets who'd hoped for success in meeting Abe's 2% target by then.
  • Taiwan...Q3 GDP disappoints @ 1.58% vs 2.47% exp. on disappointing trade data showing some weakness in exports.  Taiwan is very export dependent representing 3/4 of GDP!  There was a silver lining, however, with orders in the tech sector (which is key for Taiwan) picking up, auguring well for Q4 growth.
  • Australia...building permits soar.  
  • Europe...generally lower on weak US and Asia markets and some earnings disappointments among oil companies.
  • Italy..unemployment hits record high 12.5%.
  • US....budget deficit shrinks to five year low, helped by sequestration spending cuts and increased personal taxes.
  • more later...

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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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