Daily Market Report 28/08/2013 Tuesday was once again a relatively quiet day in terms of fundamental data. Germany posted another improvement in their business climate survey. This was the fourth month in a row that Germany has shown an improvement and is largely due to improvements in economic conditions and improved GDP data. The US posted the only other expected data in the form of their consumer confidence that also surpassed expectations. Tuesday was once again a relatively quiet day in terms of fundamental data. Germany posted another improvement in their business climate survey. This was the fourth month in a row that Germany has shown an improvement and is largely due to improvements in economic conditions and improved GDP data. The US posted the only other expected data in the form of their consumer confidence that also surpassed expectations. Despite this news, the markets really were taken by surprise as global equities saw the largest drop in two months. The same rhetoric is largely to blame as investors show more concern over exposure to volatility. Gold has already increased in price in the month of August as demand for the classic safe haven soars. The Swiss Franc has also strengthened two per cent in the last week. Thoughts that the US may make a move in the next few months to scale back their QE are being felt across the globe. To compound the situation, problems in Syria are seemingly escalating to new highs. International intervention over the suspected use of chemical weapons would appear to be only a matter of time. David Cameron Chairs a meeting in Parliament today over the UK’s potential response to the crisis. Heightened tensions in Syria and potential reprisals lead to Dubai’s stock markets largest fall since 2009. Possible military action, not too dissimilar to concerns in North Korea earlier in the year, will create uncertainty and less risk appetite in financial markets than we have become used to in recent months. Wednesday’s main news in the UK comes from Mark Carney as he is due to speak at 1.45pm where is it highly expected that he will defend the Bank’s new policy on forward guidance. However Carney has hardly been one to conform with expectations in his short time in office so we may well surprise us one again.