· Another choppy session with stock sending flat to lower and treasuries grinding higher in the US.
· USD MYR still trading in its3.1000-3.1500 range after last week’s false break below 3.1000, expecting thin trading volume today with a tight range of 3.1050-3.1250
· US data was mixed with the CB consumer confidence figure falling to 60.6 from 65.4 in July,surprising markets but not reading as poorly as it did in 2011 when it reach eda low of 40.
· The S&P Case Shiller HPI show edits first annual gain since Sep 2010, adding to the growing positives from the US housing market. Finally the Richmond Fed manufacturing index bounced from -17 to -9,rounding off what on balance was seen as a positive for QE as the dollar sold off.
· David Riley, director of sovereign ratings Fitch rating agency also warned that the US fiscal cliff posed “real concerns” and that the AAA rating was at risk of a downgrade in H1 2013.
· Money supply figures out of Europe gave the currency there a shot in the arm and is a good sign for Europe, M3 rising at an annual rate of 3.8%. The measure has been rising steadily since the end of last year (post LTRO1).
· News that Mario Draghi will not beat tending the Jackson Hole event this weekend due to a heavy workload permeated markets. The next ECB meeting is on the 6th Sep and as we know they are furiously working on measures to handle the sovereign bond buying program, more rumours abound overnight.
· Catalonia is to seek €5bnfrom the central government. This was expected and had been flagged before but the headline perhaps just spooking markets somewhat. Meanwhile Spanish GDP was confirmed as falling by 1.3% on an annual basis. Spanish 10yr yields blew out 10bps to 6.48%
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