Daily Market Outlook from ACFX 09/30/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/30/2013


Important Financial Indicators of the day

CAD - 12:30 (GMT) - GDP m/m - Forecast 0.6% - Previous -0.5%


Currencies

•EUR/USD The dollar dropped to a one-month low against the yen as political wrangling over the budget threatened a U.S. government shutdown from tomorrow.

•The dollar touched 97.53 yen, the weakest since Aug. 29, before trading 0.4 percent lower at 97.89 yen as of 6:48 a.m. in London. Japan’s currency added 0.6 percent to 132.11 versus Europe’s 17-nation tender and reached 131.38, the strongest since Sept. 9. The euro declined 0.2 percent to $1.3497

•GBP/USD The pound strengthened for a fourth day against the euro after an industry report showed U.K. house prices rose the most in six years this month.

•The pound rose 0.4 percent to 83.49 pence per euro at 7:58 a.m. London time after appreciating to 83.40 pence, the strongest since Jan. 17. Sterling was little changed at $1.6145.




Commodities

•Oil West Texas Intermediate crude fell to the lowest in almost three months on concern that the U.S. government is headed for a shutdown over a budget stalemate that would reduce demand in the world’s largest oil consumer.

•WTI for November delivery slid as much as $1.42 to $101.45 a barrel in electronic trading on the New York Mercantile Exchange, the lowest intraday price since July 5. The contract was at $101.50 at 2:49 p.m. Singapore time. The volume of all futures traded was about 33 percent above the 100-day average. Prices are up 5.1 percent this quarter and 11 percent in 2013.

•Brent for November settlement fell as much as $1.13, or 1 percent, to $107.50 a barrel on the London-based ICE Futures Europe exchange and was at $107.60. The European benchmark crude was at a premium of $6.08 to WTI futures, up from $5.76 on Sept. 27.

•Gold advanced to the highest level in more than a week, heading for the first quarterly increase in a year, as concern that the U.S. government may be shut down because of a budget impasse boosted haven demand.

•Bullion for immediate delivery advanced as much as 1.3 percent to $1,354.35 an ounce, the highest price since Sept. 20, and was at $1,340.80 at 3:06 p.m. in Singapore. Prices are 8.6 higher in the three months ending today, the first quarterly increase since the period to September 2012.



Equities

•Asian stocks fell, with the benchmark index paring its biggest monthly gain since 2012, on concern the U.S. government is headed for a shutdown amid a budget stalemate.

•The MSCI Asia Pacific Index dropped 1.5 percent to 138.73 as of 3:33 p.m. in Tokyo, with all 10 industry groups on the gauge falling. It’s headed for a 6.6 percent increase this month, the most since January 2012, and is up 6.3 percent this quarter. Even if Congress resolves the budget fight by the Oct. 1 deadline, U.S. lawmakers would move to the next fiscal dispute over raising the $16.7 trillion debt ceiling.

•European stocks sank as the U.S. faced the first government shutdown in 17 years and Italian Prime Minister Enrico Letta fought to save his administration. Asian shares and U.S. index futures retreated.

•The Stoxx Europe 600 Index fell 0.7 percent to 310.02 at 8:05 a.m. in London. The gauge has still climbed 4.3 percent in September as the Federal Reserve held off from trimming its monthly asset purchases. It has surged 8.8 percent since the end of June, heading for the biggest quarterly gain in four years. Standard & Poor’s 500 Index futures retreated 0.8 percent today, while the MSCI Asia Pacific Index sank 1.5 percent.

•U.S stocks futures slumped for a second day and Treasuries rose as politicians clashed over the federal budget, threatening a U.S. government shutdown starting tomorrow.

•Standard & Poor’s 500 Index futures expiring in December dropped 0.7 percent to 1,675.20 as of 6:42 a.m. in London, heading for the lowest close in three weeks. U.S. 10-year yields fell three basis points, or 0.03 percentage point, to 2.60 percent, Bloomberg Bond Trader data show. The 2.5 percent note due in August 2023 rose 7/32, or $2.19 per $1,000 face amount, to 99 5/32 as investors sought the relative safety of debt.