Market Update - 27 November2012

• Last night, Eurozone and IMF finally agreed to yet another new agreement towards giving new and badly needed funds to Greece, but market reacted little as I reckon most of it has been priced in.

• EURUSD moved from 1.2800-1.3030 while AUDUSD moved from 1.0400 to 1.0500 in what was a relatively “large” move given the relative inactivity in markets lately.

• Dow Jones was up 0.19% to 12,961 while S&P was up 0.24% at 1,406.40. For those who have not been following the Asian equity markets the “star” right now is probably Olam, Singapore’s largest commodity trader and the world’s second largest ruice trader. Muddy Waters LLC have accused Olam of inaccurater accounting practice in how it values it’s future crops and inflate it’s profit and valuation and Olam have since denied it and sued Muddy Waters….quite interesting to keep in touch.

• USDMYR also opened just a at lower at the support level of 3.0500 and as we move into December, I would say expect the last 5 weeks of 2012 to have low volumes and I can’t see where the drastic moves might come from aside from some window dressing for the year end.

• Might be a little too early to talk about 2013, but I reckon 2013 will have lots of volatility from the start, maybe as early as January; as approvals from EU and IMF is met by deteriorating European datas, while improving US datas are met with how to resolve a Fiscal Cliff and not trigger a recession, finally new Chinese government so far seems very cautious when the world rely on the only powerhouse to carry them out of this trough.

• We might have seen the worse but don’t expect overnight recovery, in fact the road to recovery is likely going to be a very choppy one.

• The appointment of the current Bank of Canada Governor Mark Carney to replace Mervyn King as the next Bank of England Governor caught markets by surprise. The initial GBP reaction was positive, and we believe this is justified by Mark Carney's solid reputation and recent track record.