Market Update 2 Oct 2012

• Chairman Bernanke defended the Federal Reserve’s unprecedented bond buying in his first comments since the Fed renewed the purchases last month, saying the bond-buying program will spur growth, cut unemployment, help savers and support the dollar

• Wall Street was up with the Dow +0.58% and S&P +0.27% while Nasdaq -0.09% as investors took positive cues from the higher-than-expected US Manufacturing ISM data at 51.5 from a previous 49.6

• An EU advisory group will today recommend reforms that could include splitting banks’ retail business from their investment operations to protect savers and host nations from the kind of risk-taking that triggered the financial crisis

• Asian stocks rose with the regional benchmark index heading for its first gain in three days, as US manufacturing unexpectedly expanded and Bernanke renewed a pledge to sustain record stimulus, boosting the outlook for exporters

• KLCI inched slightly higher on Monday and closed at 1643.31, as sentiment continued to be bolstered by the feel good effects from the budget announcement on Friday.

• USD/MYR opened lower this morning, expected to trade circa 3.0480 - 3.0630 for today