Thursday, 3 October 2013

Government Shutdown and ISM Misses!

We are into the second day of the Government Shut down in the US, Markets have remained strong shrugging off pretty much everything in the process. The Nasdaq remains very strong, with the usual pattern over the past few days being, weak open, then gradual grind up the rest of the session, its remarkable how it keeps going up despite already being up 25% this year, and no real catalyst to warrant this level.
However with a big miss on ISM Non Manufacturing,  pressure has been put on the Stock Markets and pushed Bunds back above 140. Although I suspect the Nasdaq will rally to almost flat come the end of the session as has been the pattern of late.

Euribor Spreads have maintained its narrow range, as Draghi didn't offer any surprises in yesterday ECB meeting and it being a German holiday today.
In general its been a very tough few days in trading STIRs as volume has dropped off a cliff and its generally like watching Paint dry right now. Hard to make anything at all, but as always best not to push it when the opportunities aren't there and just wait for things to get better.
Normally I would be excited at the NFP data which is due tomorrow, but due to the Government shut down this will not be happening, so likely to be another slow day tomorrow too. Lets hope this all gets solved soon!

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