Market Update - 10 Sept 2012

US Non-farm Payroll in Aug was lower than expected at +96k (vs. est: +125k ; previous: +163k). Unemployment rate lower at 8.1% (vs. est: 8.3% ; previous: 8.3%)

Market was very positive and risk on before the data but the numbers disappointed, nonetheless     market actually closed up as market now anticipates the Fed to have QE3 as soon as this month

The number actually reaffirms the weakness that is now permanent in the US economy and QE3     I personally think will have a lesser effect compared to QE1 and QE2, in addition the size and tenor of the QE3 will matter, anything less than market “hope” for will result in taking profits of the currently building long risky assets positions.

USDMYR on expectations of QE3 also moved lower to 3.1050 and currently testing the near term support of 3.1000. Expect 3.1000 to potentially break when London opens today or if low players decide to take the first move

European Central Bank  may spend EUR 70-100 bio on bond purchases this year if interest rates on Spanish and Italian debt rise again “sharply” [Bloomberg]

Chinese President Hu Jintao said a slowdown in exports is putting downward pressure on the economy, and he pledged to boost domestic demand and promote more balanced growth.

Korea Housing Finance Corp. plans to more than triple sales of residential mortgage-backed securities to investors, allowing banks to expand home lending without adding to the consumer debt they carry on their books.

Overnight, DJIA up 0.11 % to finish at 13,306.64