Daily Review Sep 10th, 2013

Daily Market Review

Sep 10th

U.S. Exchanges rose for the 5th straight day yesterday led by the Nasdaq that closed at its highest level in 13 years after the prospects for an imminent U.S. attack on Syria began to fade.

Syrian ally Russia proposed yesterday that Syrian president Assad will put up his chemical weapons under the international community supervision which may be enough in order to cancel the U.S strike.

Friday’s Job reports continue to make waves for the 2nd day. On Friday, it was reported that The U.S. economy added 169,000 jobs in August, less than market calls for 180,000 increase. It also revised down dramatically July and June numbers.

This latest data continued to fuel sentiments that the Federal Reserve may hold off on announcing plans to begin taper down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting.

Even if the Fed does announce on a plan to taper stimulus programs at its meeting this month, it is expected that it will be symbolic only.

 

Asian stocks rallied on Tuesday session following their U.S. counterparts as a late reaction to yesterday developments but also as a reaction to Positive numbers out of Japan and a better than expected numbers from China.

Bank of Japan minutes reviled that in its last month’s meeting, the central bank’s nine board members agreed unanimously to stick to the current easing program, which aims to double the BOJ’s money supply to generate 2% inflation in two years.

These positive prospects came a day after Japan said that its economy grew at an annualized 3.8% percent from the first quarter, higher than an initial estimate of 2.6%.

China reported this morning that its Industrial Production rose to 10.4%, from 9.7% in the preceding month.

Analysts had expected Chinese Industrial Production to rise to 9.9% last month.

It also reported that its Retail Sales rose to an annual rate of 13.4%, from 13.2% in the preceding month.

Analysts had expected Chinese Retail Sales to remain unchanged at 13.2% last month.

 

As the economic calendar for the rest of the day is empty, investors will continue to look for clues ahead of the FOMC meeting next week and to look for further developments in the Syrian crisis.

 

OIL futures traded lower in Asia Tuesday as fears regarding an imminent U.S. military offensive against Syria continued to wane.

U.S. President Barack Obama is scheduled to address the U.S. on Tuesday and press the case for an attack on Syria, though Russia latest proposal and its US Congress reluctant to act may put an end to its plan.

Further development between the two nations U.S/Russia is likely to have a vast affect on the oil prices.

Support; 107.70, 105.75

Resistance; 108.70, 110.42, 111.74

CLc1 Sep 10th