Market Update - 6 December 2012

• Citigroup will cut more than 11,000 jobs and pull back from some emerging markets to drive down costs as revenue dries up at global banks

• Wall Street made broad gains on Wednesday, US treasuries climbed and the Dollar Index halted its longest slump in more than a year.

• Investors' sentiment was lifted by Obama's remarks that the budget stalemate can be resolved within a week and China new leaders’ pledge to accelerate urban development. Positive sentiments were also boosted by US factory orders and ISM non-mfg index, while Euro-area composite PMI rose above-expectation to 46.5.

• Euro slipped after a disappointing Spanish bond auction and weak Eurozone economic data.

• Reserve Bank of New Zealand kept rates unchanged at 2.50% this morning as widely expected. Wheeler said domestic demand will strengthen and next 2 years domestic growth to accelerate to 2.5 – 3.0%, NZD/USD higher post announcement.

• KLCI closed slightly above the 1610 mark, driven by some recovery in the local sentiment but continued to show little indication that any significant move is forthcoming in the near-term. October trade data due tomorrow is eagerly awaited for hints of recovery in external demand.

• USD/MYR remains trapped in recent range and likely to trade circa 3.0400 for now