Market Update - 5 June 2013

• Some consolidation in Wall Street: Dow -0.50%, S&P -0.55% and Nasdaq -0.58% as investors await key economic data including EZ 1Q13 GDP and US factory orders,

• The US trade deficit had widened USD 40.3billion as the rise in imports offset the rebound in export. The imports grew on the stronger dollar, despite being weighed by lower oil prices. Meanwhile, exports grew to a record with the automobiles and jewellery industries seeing strong sales.

• The US dollar is back above 100 yen, after rallying from the lowest in almost a month, before US employment data that may add to the case for the Federal Reserve to slow stimulus

• Other major currencies were mostly flat, except the Aussie dollar which was a notable exception as it fell another ~80pts overnight. RBA kept is cash target at 2.75% unchanged yesterday at its monthly monetary policy meeting as widely expected.

• The UK construction PMI rose more than expected to 50.8, the first sign of expansion since October, this supports the view that the economy may be seeing a turnaround.

• USD/MYR remains supported for now above the 3.0800 level, expected daily range is 3.0800 – 3.1000, to bolster further upwards move, may need a break of the 3.1000 psychological level.