Friday, November 15, 2013

Morning Memo: Friday, November 15, 2013 (Updated 11:00am ET)

"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...Up!  On the heels of Janet Yellen's pro-QE-pro-stimulus testimony yesterday in front of the US Senate Banking Committee, and the subsequent US equity market rally, equity markets in Asia rallied. 
  • Japan....a weaker Yen also added to the Nikkei's Yellen-inspired rally.
  • China...disappointment earlier this week over the Communist Party's Plenum meeting not broadcasting more immediate meaningful reform, is giving way to markets now rumoring about the longer-term market-friendly changes that are likely to come.  Equities rallied!    (Editorial note:  the following note from the FT is worth considering):

  • Europe....the Yellen rally is wearing off.  Markets are mixed, losing the steam that was building up in Asia hours.  (Editorial note:  Why is the Yellen-rally tapering off? {couldn't resist the use of 'taper' in a non proper-noun sense!}.  Perhaps the reality of the next note is sinking in.  Just perhaps....)
  • Europe..Of interest re GDP data released earlier this week...see this chart and the accompanying article re GDP in the Eurozone.  It's noteworthy that Germany and France collectively represent nearly 50% of the region's GDP, with Italy at 16.5%.  In Q3, Germany grew only 0.3% and France contracted 0.1%.   
  • US...Moody's cuts credit rating of three banks (JPMorgan, Morgan Stanley and Goldman).
  • more later..... 
  • LATER:
    • US Industrial Production worse than expected.  Drops 0.1% in Nov.  Utilities and mining drop.  Manufacturing rises.  Capacity Utilization drops to 78.3, still over 2 points below its four-decade average.

    • NYState Empire State Mftg Index worse than expected at -2.21.  First negative reading since May.  The six month outlook, however, was still favorable.  But, new orders dropped! 
    • US..Wholesale inventories rise, confirming Q3 growth fueled by inventory build.
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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