Market Update - 19 Sept 2012

• Market was relatively flat last night as there was no major datas in the market and conviction levels in general in the market is still low. Market is still skeptical of the US Fed’s ability to get themselves out of the current situation of low growth and high unemployment purely with asset purchase.

• USDMYR opened a tad higher again at 3.0700 as the short USDMYR positions continue to gradually unwind and 3.0500-3.1000 still in tact for the week as we await the China PMI numbers which will be keenly anticipated by market to see how the health of the major economic driver is.

• There’s more and more talk of Gold gunning for USD1900/oz and then USD2000/oz, and being the contrarian me, I reckon market will not likely hit those levels and if anything expect to see sell on rallies to dominate the precious metals. AUDUSD supported at 1.0400 and currently trading at 1.0420.

• Dow was up 0.09% at 13,564.64 and the S&P is down 0.13% at 1,459.32, rest of the markets are mostly flat to slightly in the red as we expect Asia to continue the quiet tone and low trading volumes today.

• Treasuries gained for a second day, recouping almost half the losses posted since Federal Reserve policy makers announced more debt purchases last week, on bets the U.S. economy will struggle to expand even with stimulus.
  
• Yields on 30-year bonds have declined eight basis points in the past two days, after surging 17 basis points following the conclusion of the Federal Open Market Committee meeting Sept.13.

• Spanish 10-year bonds advanced, snapping a three-day decline, as the country sold 4.6 billion euros ($6 billion) of bills at its first auction since the European Central Bank proposed buying sovereign debt.
  
• Spain’s 10-year yield, which earlier climbed above 6 percent for a second day, declined as Deputy Prime Minister Soraya Saenz de Santamaria said the country will consider seeking a bailout if the conditions imposed are acceptable.