Market Update - 19 October 2012

• Markets consolidated over night after Microsoft (-0.17%) and Google (-8%) both reported badly weighing on technology stocks and holding the S&P down by -0.24% and the DOW (-0.06%) was hurt again by IBM.

• The Eurostoxx rose slightly but it was quiet going out there as European leaders made their usual noises without saying much at all, talks continue tonight and don’t rule out more headlines this morning.

• USDMYR, interesting one, its nearing 3.0500 again, if it closes back above 3.0500 we might see it go back to the persistant 3.0500-3.0900 trading range again, London open and equity markets should take the lead for the pair, but expect short USDMYR to take profit or square off ahead of the weekend.

• Spain’s stock market pulled back 0.34% but peripheral spreads continue to narrow, Greece 10yr fell 41bps and Spain’s 13bps.

• After a week of reports we have analysts now expecting a fall of 1.5% from a year ago on earnings vs a 3% fall before we began, looking up.

• More good data in the US from the Philly Fed showing the manufacturing index at its highest level since April, led by a gain in inventories.

• Just to touch a little on the US Presidential elections, the 2^nd round of debate Obama vs. Romney, Obama made amends and came out firing and put Romney on the backseat. Romney also didn’t do his campaign much favour by making a so called sexist comment on female employment. Obama took a slight edge back in the election again……I’m sticking to my call, Obama to take this one.

• We mentioned the big fall in initial unemployment claims last week but this week it reversed all the gains, rising back to the higher end of this year’s range at 388k.

• A successful Spanish bond auction helped things in Europe while a man reportedly died amid anti austerity protests in Greece.