Baiduri Bank Group Market Commentary

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08 February 2010

Tuesday, 09 February 2010 09:32
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We can be reached at Tel: 226.8307 Treasury, Website: www.baiduri.com, E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

08 February 2010

INTERBANK  FOREX  &  MONEY MARKET
CCY BID OFFER TENOR/CCY SGD USD
EUR/US$ 1.3706 1.3707 Overnight 0.06 0.10
US$/JPY 89.48 89.50 1 week 0.09 0.15
GBP/US$ 1.5306 1.5606 1 mth 0.18 0.20
US$/CHF 1.0707 1.0710 3 mth 0.25 0.23
AUD/US$ 0.8696 0.8700 6 mth 0.37 0.31
NZD/US$ 0.6912 0.6916 9 mth 0.43 0.48
US$/CAD 1.0676 1.0680 12 mth 0.50 0.79
US$/HKD 7.7707 7.7709
US$/SGD 1.4205 1.4210
US$/MYR 3.4380 3.4430
US$/THB 33.15 33.20 Gold: USD1,058.00( - 25.25 )
US$/IDR 9400 9410
US$/PHP 46.580 46.600
US$/KRW 1171.75 1172.00 Brent: USD70.20( + 0.61 )

FX REVIEW

The euro and growth-linked currencies were on slippery ground as risk appetite was subdued on the back of mounting fiscal worries in the eurozone and lingering concerns about a global tax on banks. The Australian and New Zealand dollars fell as concern about mounting budget deficits in Europe prompted investors to sell higher-yielding assets. New Zealand’s currency also weakened after central bank governor Alan Bollard said yesterday the nation’s economy is “still fragile.” Both currencies declined as Group of Seven finance ministers in Iqaluit, Canada, pledged to press ahead with economic stimulus measures amid concern about sovereign risk crises in nations including Greece, Portugal and Spain.

OUTLOOK

Direction this week will come from what happens out of Europe.
MAJOR STOCK INDICES
DJIA    :    10,012.23 ( + 10.05 )
FTSE  :     5,060.92 ( - 78.39 )
N225   :    9,951.82 ( - 105.27 )
HSI     :    19,550.89 ( - 114.19 )
STI      :    2,693.62 ( + 10.06 )
KLSE  :   1,235.22 ( - 12.68 )


REVIEW

Japanese stocks fell as the euro weakened to a one-year low against the yen and after results at Panasonic Corp. and Casio Computer Co. clouded the outlook for company earnings. Sony Corp., a consumer- electronics maker that counts Europe as its biggest overseas market by sales, lost 3.6 percent amid speculation widening budget deficits in Greece and other European nations will deter investors from buying the region’s assets. Kirin Holdings Co., Japan’s largest beverage maker, slid 7.4 percent after terminating merger talks with Suntory Holdings Ltd. Panasonic, the biggest maker of plasma televisions globally, sank 5.3 percent after saying its TV business will post an annual loss. Casio slumped 5.3 percent after widening its full-year net loss projection. Hong Kong’s benchmark stock index fell to a five-month low on continued concern China will act to rein in economic growth and commodity producers dropped along with metal prices.

OUTLOOK

Investors are concerned about who will rescue Greece and how it’ll be rescued. The reaction in the stock market seems excessive, but the euro’s fall against the yen inevitably has an effect.

This daily commentary and opinion is subject to change without notice. Those interested are requested to call our Treasury Dept. at Tel: 226.8307 for latest information.
 
This daily commentary and opinion is subject to change without notice. Those interested are requested to call our Treasury Dept. at Tel: +673-226-8307 for latest information.We can be reached at www.baiduri.com(website) or bank@baiduri.com(e-mail).