Yellen effect calms markets - Hewson

YELLEN EFFECT CALMS MARKETS - HEWSON Markets calm as Janet Yellen looks set to be named the next Federal Reserve chief. CMC Markets' Michael Hewson says the appointment, the U.S. shutdown and October payrolls, are all likely to push talk of tapering into 2014. SHOWS: LONDON, ENGLAND, UK (REUTERS - ACCESS ALL) (OCTOBER 9, 2013) 1. CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON, SAYING: JOURNALIST ASKING MICHAEL HEWSON: "Has this been timed, the Yellen news to calm the market?" MICHAEL HEWSON: "I think it certainly had that effect, Axel. I mean, just post those comments by President Obama late last night about there was no magic bullet. We saw the S&P 500 post its biggest decline for 11 months. Now, obviously Janet Yellen's confirmation later today as Fed Chairman adds a significant era of continuity to monetary policy. But I don't think that was really ever in doubt but markets have reacted well to that. You've seen the Nikkei close up 2%, you've seen S&P futures bounce back quite considerably and European markets still look to open lower but they're certainly looking a lot healthier than they did late last night." JOURNALIST: "And have indeed opened lower just now, just a touch. But does this delay the taper even more, do you think?" MICHAEL HEWSON: "I don't think tapering was ever really on the table for October or December in any case. If you look at September payrolls, we are still waiting for them. October payrolls, it's going to be very, very difficult to get any data for that and I think this government shutdown is going to be very, very difficult to really gauge the damage to the US economy this shutdown has done. And the Fed has always stipulated that any tapering has to be data dependent. So, I think really, the talk about tapering, I think we really need to push it into next year." JOURNALIST: "All right. Irrespective of who's in charge of the Fed. Clearly, markets are worried about short-term funding though, when we look at the curve, right?" MICHAEL HEWSON: "Yeah. Absolutely and we're seeing...