Monday, December 9, 2013

Morning Memo: Monday, December 9, 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....adding to the positive sentiment from last Friday's US employment  data, China, over the weekend, announced a better than expected rise in the trade surplus w/exports gaining 12.7%.  China also announced CPI inline at 3%, viewed positively by the market as giving the government room to continue rolling out economic reforms.
  • Japan... Nikkei up over 2% as the weaker Yen (USD over 103) added to market strength w/exporters rallying.  The rally came despite data on Q3 GDP which was lowered to 1.1% from initial estimates of 1.9% on weaker capital expenditures and softer foreign demand.  Markets seemed to view the weaker data as a sign that the BOJ will add to stimulus measures.
  • Thailand...a walk-out by the opposition party over the weekend, resulted in the PM announcing that she'd dissolve Parliament and call for elections as soon as possible.  This came as a result of the recent protests surrounding legislation that would have allowed for the return of exiled former PM and brother of the existing PM, which manifested in a split between rural and urban populations on economic grounds.
  • Taiwan...a big exporter of electronics, announced exports were lower than expected in Nov, flat vs 2.0% exp viewed by some as a worrying sign re global growth.
  • India...state elections went in favor of the opposition party, routing the current ruling party, and raising hopes that general elections early in '14 will bring new leadership that will propel the economy.  The Sensex hit record highs
  • Ukraine..protests continue against the gov'ts recent turn from the EU towards Russia. 
  • Europe... opened generally higher on the heels of China's strong export data and positive tone in US and Asia markets.  
  • surplus narrows in Oct on a jump in imports.  This is notable given recent critique of Germany that they're too reliant on exports and not doing enough to stimulate domestic demand.
  • more later....
  • Of interest:
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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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