Morning Memo: Tuesday, November 5, 2013

ICYMI...yesterday's posts re Emerging Market investing. 

Follow-up to Previous Post re EM: "Buying EM By Not Buying EM!"

Buying Emerging Markets By Not Buying Emerging Markets!

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

"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...markets mixed.  Early gains faded.  Focus on events later this week including the beginning of the China Communist Party Third Plenum where markets are looking for info on reforms, and US Non-Farm Payroll data for October, both on Friday.
• China...HSBC/Markit Service PMI rose to 52.6 fr 52.4, showing improvement in New Orders. (NOTE:  This is direct contrast to yesterday's Official data from the Gov't that showed slowing in New Orders!).
• Australia...RBA leaves rate unched, as expected, at 2.5%.
• India...Service sector PMI still below 50, though up from previous month to 47.5 fr 46.1.  Sensex fell on the news, first time in five days.
• UK..Service PMI highest since '97!!  Particularly important considering Services represent over 3/4 of the UK economy.  The Pound surges on the news.
• European Commission....lowers forecast for Eurozone for '14 slightly to 1.1% fr earlier forecast of 1.2%.  For this yr, growth declining by 0.4% as expected.  Evidence of improvement in conditions, but not yet out of the woods, according to the ECs report.  To quote: 
  

  while the macroeconomic imbalances that have plagued the eurozone throughout the three-year crisis are diminishing and prospects for recovery have strengthened, the ongoing need for several governments to reduce their debt burdens continued to weigh on growth.

  Olli Rehn added:  "But it is too early to declare victory: unemployment remains at unacceptably high levels. That's why we must continue working to modernise the European economy."

• European markets....generally lower on EC lowering forecasts for growth.
• ECB...meeting on Thursday.  Markets looking for response to last week's weak CPI data showing weak domestic demand broadly throughout Europe.
• US....of note fr JPM research:

  Recent upgrades in global GDP forecasts contrast with US downgrades. JPMorgan graph on new orders confirms this trend pic.twitter.com/zFEDQGBSjr
  — Gavyn Davies (@gavyndavies) November 4, 2013

•  
• more later.....
• Later:
• US..

ISM non-manufacturing #PMI rises from 54.4 in Sept to 55.4 in October, New Orders Index 56.8, Business Activity 59.7, Employment 56.2
— Markit Economics (@MarkitEconomics) November 5, 2013

 

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