Market Update - 29 March 2013

• Stocks rallied, sending the S&P 500 Index to a record, as the reopening of Cyprus banks with new rules curbing access to cash eased concern about Europe’s debt crisis.

• Confidence among US consumers fell to a six-week low and claims for jobless benefits rose more than forecasted, highlighting the risks to the economy posed by federal government budget cuts. US Q4 GDP rose at a 0.4% annual rate.

• The euro hovered near four-month lows against the dollar, mainly due to the political deadlock in Italy and worries that the Cyprus bailout could cause panic amongst investors in other euro zone debt.

• Cyprus averted panic withdrawals as banks opened for the first time in almost two weeks, with government controls on access to cash leading to orderly lines rather than runs on deposits.

• Japan’s manufacturers predict a rebound in production this month after the deepest slide since the aftermath of the March 2011 earthquake, with the central bank poised to step up monetary stimulus next week.

• USD/MYR opened lower this morning, below 3.1000, expected trading range for today 3.0800 – 3.1000