Market Update - 30 November 2012

• TGIF and I am finding it challenging to write commentaries these past couple of weeks as it’s really quiet not just in Asia but also in Europe and US. I think the lack of price movements reflect that as we move into December 2013 tomorrow.

• Last night market headline was Republican’s John Boehner dampening market’s hopes and optimism by saying there has been absolutely no progress in the fiscal cliff negotiation and there seems to be a lot of work to be done.

• Market was of course disappointed because they are hoping the US could avoid potential recession as tax cuts and reduction in spending will plough them back into recession in 2013 just as they start to have a mild recovery.

• USDMYR opened this morning at 3.0450 slightly above higher as local traders pick up the news on lack of progress in the fiscal cliff negotiations in the US. Parliament met for the last time yesterday until after the next election with nothing particularly intersting to note. Expecting USDMYR to trade up a little as we head towards weekend and traders squaring any positions they have.

• US Q3 GDP for only the second time came in higher than the Fed’s 2.50% benchmark, coming in at 2.70% but mainly due to inventory building, but Q4 GBP is likely to disappoint as Sandy put a dent into the economy and market is expecting a number closer to 1.0-1.5% for Q4. For that very reason market reacted little to it and traded sideways in NY time.

• The Dow was up 0.28% to 13,021.82 and S&P was up 0.43% to 1,415.12, Asia opened mixed today in the equities space and Gold still hovering around its short term support of 1720, currently trading at USD 1722.00/oz.