Wednesday, October 16, 2013

Morning Memo: Wednesday, October 16, 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...

  • US debt ceiling and budget negotiations captivate global market focus.
  • subdued and generally negative tone following yesterday's failure to see a resolution to the US budget and debt ceiling crisis.  Late word that Fitch was putting the US AAA rating on negative watch for possible downgrade added to the worries.  
  • Japan...Nikkei, after an up and down session, closed marginally higher.  Data on apartment and condo sales in Tokyo showed a very strong increase in the numbers for sale, indicating that Abenomics, by lowering borrowing costs and by improving prospects for the economy, might be working and positively impacting activity in the housing sector.
  • China...broadly lower ahead of Friday's data release of Q3 GDP (economists expect 7.8% vs Q2's 7.5%).  Concerns run high that the economy may be slowing and might disappoint general expectations of a pickup from Q2.
  • Asia, awaiting further news from Washington re debt ceiling negotiations.
  • UK...Unemployment steady at 7.7% but good news on the 'jobless claims' front with the number dropping to the lowest level since 2009.  Recall, the BoE Gov Carney's 'forward guidance' on policy is linked to bringing down unemployment to 7%.
  • Company related news with possible broader market consequence:
    • Intel (INTC)...though beating expectations on earnings for Q3, issued relatively downbeat outlook on Q4 PC sales
    • Apple (AAPL)...reported to have slowed purchases of iPhone 5c,  possibly indicating slowing demand.
  • 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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