Market Update - 3 June 2013

• Global bonds market posted their biggest monthly losses in nine years in May as the US dollar rallied and stocks reached record highs. Employment gains an increases in housing and consumer confidence suggested the recovery in the US economy is gaining momentum.

• The Aussie dollar, gold and copper climbed, while oil declined.

• China released their manufacturing PMI which showed a small gain (50.8 from 50.6 last month; survey was 50.0). China’s government indicated a slowdown in its economy is bottoming out, underscoring forecasts for policy makers to avoid cutting interest rates this year

• Asian stocks fell extending last month’s loss, amid speculations that a strengthening US economy will prompt the Federal Reserve to reduce monetary stimulus.

• USD/MYR may continue to be supported, with a possible test of 3.1000 in the horizon, today’s expected range is 3.0800 – 3.1100.