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.