MARKET RESEARCH

Sep 16th Sep 20th

SPOTLIGHT
Japanese Balance of Trade (in Billion JPY)

Portugal
PSI 20 fell 0.25% this week, countering the European trend. Portuguese bonds underperformed all debt markets in the Euro Area as S&Ps stated it may cut the nations credit rating, if the government fails to meet its budget deficit goals. The Portuguese real estate market showed signs of a recovery and of the return of investors confidence, as spending on commercial real estate rose to 161 million euros in the first six months of 2013 from about 47 million euros a year earlier. Furthermore, the economy expanded 1.1% in the second quarter from the previous 3 months, the first increase since 2010.
Wkly Chg
-0.25% 2.10% 0.19% 1.95% 2.17% 2.34% 2.56%

FEP Finance Club; tradingeconomics.com

INDEXES PERFORMANCE
Sep 16
PSI 20 STOXX 50 FTSE 100 DAX CAC 40 NIKKEI 225 HANG SENG
6,018.30 2,894.64 6,622.86 8,613.00 4,152.22 22,915.28

Sep 17
5,935.83 2,890.95 6,570.17 8,596.95 4,145.51 14,311.67 23,180.52

Sep 18
5,971.18 2,908.92 6,558.82 8,636.06 4,170.40 14,505.36 23,117.45

Sep 19
5,980.71 2,936.20 6,625.39 8,694.18 4,206.04 14,766.18 23,502.51

Sep 20
6,044.75 2,927.19 6,596.43 8,675.73 4,203.66 14,742.42 -

Europe
After Fed unexpectedly refrained from reducing its monthly bond purchases and L. Summers withdrew from consideration as chairman of the central bank, European stocks climbed for a third straight week. EURO STOXX50 railed 60 points (2.1%) reaching its highest level of the year. In Aug., Euro Areas annual inflation rate fell to 1.3% from 1.6% in the previous month. Transport fuels, telecommunications and medical services had the biggest downward impacts. Consumer confidence in the Euro Area increased to -14.90 in Sep from -15.60 in the previous month, reaching the highest level of the year. In Jul, the Euro Area trade balance in goods with the rest of the world rose to 18.2 billion euros, from 13.9 billion euros in Jul of 2012. Armenia and Hungary filed to issue international bonds following other emerging-market issuers that seek for international funding.

FEP Finance Club; Google Finance

CURRENCIES
Sep 16
EUR/USD EUR/CHF EUR/GBP EUR/JPY EUR/YUAN AUD/JPY
1.334 1.236 0.839 132.15 8.163 92.35

Sep 17
1.336 1.237 0.840 132.43 8.177 92.73

Sep 18
1.352 1.234 0.838 132.79 8.278 93.22

Sep 19
1.353 1.232 0.844 134.52 8.284 93.87

Sep 20
1.352 1.232 0.845 134.37 8.278 93.37

Wkly Chg
1.70% -0.37% 0.90% 1.71% 1.74% 1.65%

FEP Finance Club; Investing.com

REFERENCE RATES
Sep 16 Euribor 1M Euribor 3M Euribor 6M Euribor 12M Eonia
0.128% 0.223% 0.338% 0.542% 0.073%

Sep 17
0.127% 0.222% 0.339% 0.542% 0.075%

Sep 18
0.127% 0.222% 0.340% 0.543% 0.078%

Sep 19
0.128% 0.221% 0.337% 0.537% 0.075%

Sep 20
0.128% 0.221% 0.335% 0.536% 0.078%

Asia
Asian stocks rose, after Fed refrained from cutting stimulus and Japanese exports surged. Japans trade deficit decreased to 960 billion yen, reaching 14 straight months on deficit. Japanese exports rose 14.7% yoy, to 5784 billion yen, helped by a weaker yen. Imports were up 16.0% due to higher oil prices combined with Japans increasing fossil fuel purchases. On the Chinese front, the interbank interest rate increased to 5.58%. Trade surplus rose 8.4% yoy in Aug, boosted by improving exports (7.2%). Moreover, the Chinese consumer prices rose an annual 2.6% rate in the same month. Food prices provided the biggest upward pressure on the overall index (4.7%). Lastly, consumer confidence in Australia increased to 110.63, in Aug, its highest level in more than two years.

FEP Finance Club; Banco de Portugal; BPI

BOND YIELDS
Sep 16 Portugal 6M Portugal 5Y Portugal 10Y Spain 10Y France 10Y Italy 10Y Germany 10Y UK 10Y
1.730% 6.892% 7.300% 4.427% 2.501% 4.585% 1.948% 2.913%

Sep 17
1.704% 6.650% 7.140% 4.411% 2.498% 4.534% 1.971% 2.956%

Sep 18
1.621% 6.590% 7.155% 4.316% 2.511% 4.464% 2.003% 3.014%

Sep 19
1.660% 6.615% 7.147% 4.326% 2.430% 4.422% 1.930% 2.910%

Sep 20
1.650% 6.587% 7.145% 4.303% 2.446% 4.419% 1.947% 2.922%

FEP Finance Club; Investing.com

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 1/2

SPOTLIGHT
US Inflation Rate YOY (%)

United States
Fed surprised the markets by keeping its $85 billion-amonth asset buyback program intact. This decision was driven by concerns that US economy has not given as many growth signs as expected. This news sent stocks up, with the S&P 500 hitting a historical maximum. However, a key Fed official said monetary authorities may consider tapering stimulus programs in Oct. Earlier this week, Lawrence Summers pulled out of the race for Fed chairman, easing the fears of a more aggressive monetary policy tightening, in case he was chosen. Both these facts led bond yields to fall to their lowest level this month. In the economic front, the number of people seeking unemployment benefits rose 15,000 to a seasonally adjusted 309,000. But this data was distorted for the second straight week by reporting delays. U.S. inflation rate yoy was recorded at 1.50% in Aug, while a rate of 2.1% had been forecasted.

FEP Finance Club; tradingeconomics.com

INDEXES PERFORMANCE
Sep 16
S&P 500 DJIA NQ 100 S&P Lac 40
1.697,60 15.494,78 3.168,69 3.745,23

Sep 17
1.704,76 15.529,73 3.190,83 3.776,58

Sep 18
1.725,52 15.676,94 3.231,31 3.933,53

Sep 19
1.722,34 15.636,55 3.237,61 3.902,74

Sep 20
1.709,91 15.451,09 3.224,73 3.828,94

Wkly Chg
1,30% 0,49% 1,46% 2,74%

FEP Finance Club; Google Finance

CURRENCIES
Sep 16
USD/JPY USD/YUAN AUD/USD GBP/USD USD/CHF USD/CAD
99,10 6,120 0,932 1,590 0,927 1,032

South America
Sep 20
99,37 6,121 0,940 1,601 0,911 1,031

Sep 17
99,16 6,122 0,935 1,590 0,926 1,030

Sep 18
98,19 6,121 0,950 1,613 0,913 1,022

Sep 19
99,40 6,121 0,944 1,604 0,911 1,027

Wkly Chg
0,01% 0,04% 1,63% 0,80% -2,02% -0,46%

FEP Finance Club; Investing.com

COMMODITIES
-3,38% 0,30% -2,24% -1,63%
Crude Oil WTI Natural Gas Crude Oil Brent Corn

0,00% -1,99% 2,61% 0,29%

Gold Silver Copper Sugar

Perus unemployment rate fell unexpectedly in Aug, to a seasonally adjusted 5.6%, from 6.0% in Jun. Analysts had expected this rate to rise to 6.4%. However, Peruvian GDP rose less than expected in Aug, to a seasonally adjusted annual rate of 4.50%, from 4.40% in the preceding month, while it was expected an increase to 4.75%. In Colombia, GDP rose more than expected last month, 4.2%, from the 2.7% increase in the preceding month. Analysts had expected Colombian GDP to rise to 3.4%. As for Mxico, the unemployment rate rose in Aug, to a seasonally adjusted annual rate of 5.17%, from 5.12% in Jul., falling short of analysts expectations of an increase to 5.30%.

Commodities
Oil prices fell after the U.S. and Russia struck a deal to remove chemical weapons from Syria. Furthermore, these prices softened on reports that Libyan production is on the mend, while sentiments that the Fed still remains on track to begin unwinding stimulus programs pushed down prices as well. Even though Gold prices surged with the maintenance of Feds policy, the weekly change was null, as traders took profits and rumors emerged that this maintenance may not last long. Despite storage rising less than expected in Aug, U.S. natural gas prices rose.

FEP Finance Club; Forexpros

US TREASURY YIELDS
Sep 16 US 3M US 1Y US 10 Y US 30 Y
0,010% 0,101% 2,862% 3,869%

Sep 17
0,010% 0,119% 2,844% 3,827%

Sep 18
0,010% 0,105% 2,699% 3,776%

Sep 19
0,010% 0,100% 2,752% 3,804%

Sep 20
0,015% 0,103% 2,734% 3,765%

FEP Finance Club; Investing.com

Ana Santos

Brbara Ribeiro

David Novo

Mrcia Azevedo

Tiago Fonseca

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 2/2