Equities on the retreat Tuesday following softness in Asia overnight and in US markets on Monday which saw the DJIA and S&P500 move off from record highs recorded during the session. Oil prices dropped on Iran’s agreement with six world powers to freeze parts of its nuclear programme – in return, Iran was able to secure funding to bolster the economy. This for many in the market was seen as potentially acting as a long term catalyst to place a cap on rising oil prices together with a reduction of geopolitical tensions in the Middle East. In the immediate picture, markets are still fixated with the prospects of tapering by the Fed – will we see the Fed kick off the process next month? Or will we see it at some point during the Q1 of next year, or even Q2. Much depends on economic indicators out of the US. Arguably, the most telling release will be the November nonfarm payrolls data out next week. Today, markets will be eyeing the release of housing starts, building permits, consumer confidence and Richmond Fed’s regional manufacturing index. Closer home, investors look forward to UK inflation report hearings later today for further insights on the British economic outlook. ________________________________________ Ishaq Siddiqi Market Strategist
Posted on: Tue, 26 Nov 2013 08:55:28 +0000
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