Market Update: Syrian strike fears ease after democratic shock – 30.08.2013

Source: Henderson Global Investors

The US equity market closed up marginally yesterday, with the S&P 500 advancing 0.2%. Equities were buoyed by a calmer tone entering the Syria debate as the threat of immediate military action receded. Overnight, Asian markets were mixed, with the Hang Seng Index up 0.1% and Australia’s ASX 200 up 0.8%. Japan’s Nikkei 225, however, fell 0.5%, as the inflation rate, excluding food and energy, for July fell 0.1% year-on-year.

In early trading in Europe this morning, the Eurofirst 300 is down 0.8% and the FTSE 100 is down 0.6%. Driving the markets lower is the energy sector, with oil stocks drifting down as the British parliament’s rejection of a motion supporting military action appeared to delay an imminent strike against Syria – attacks on Syria could potentially affect oil supplies, which has lifted the oil price recently. L’Oreal, the cosmetics giant, bucked the market direction, with its shares rising on strong earnings results.