Market Update - 16 October 2012

• Wall Street gained as optimism were lifted by the higher than expected US advance retail sales and Citigroup’s earnings result, while investors shrugged off the sustained decline in US Empire Manufacturing.

• US treasuries traded in the tightest range in two weeks as Federal Reserve efforts to depress long-term interest rates limited a rise in yields even after a report showed September retail sales beat forecasts

• Gold futures for December delivery tumbled 1.3%, the biggest drop for a most-active contract since July 6. Wheat and soybeans advanced

• Investors are at odds with rating companies over the outlook for Australian state government bonds, driving yields on the debt to record lows during the most aggressive debt ranking cuts since 1989

• Asian stocks gained the most in almost two weeks and the yen weakened as better-than-estimated US retail sales loosened the outlook for the US economy

• KLCI failed to make any material move on Monday but closed a notch higher at around the 1655 mark. Supportive comments from the BNM Governor on the economy might continue to boost the underlying sentiment in the market

• USD/MYR expected to be range bound, expected range for the week 3.0550 – 3.0880