1. Executive Summary : Economy/ Financial & Crude Oil
This document has been produced for the purposes of marketing and Margin Analysis 11th October 2011
Currency :
ECONOMY :
Asian stocks and currencies reverted their gains this morning after news updates from Europe last night
spurred ongoing concerns over the delays over full‐employment of EFSF power.
Meanwhile, Bank of Indonesia’s surprise rate cut (from 6.75% to 6.50%) is a reminder that Asian economies
may have to be more concerned about the contagion effect of the slowdown in the U.S. and European
economies.
economies.
European Central Bank President also warned EU leaders yesterday that the region’s debt crisis is contagious,
due to the close links between financial institutions in the region and urged governments to cooperate in
ensuring stability to the banking system.
In addition to the market’s worries, the U.S. Senate rejected
Obama’s bill to create jobs as many senators viewed the bill as
having little or no impact on the job market; yet any delays of
additional fiscal stimulus may risk putting the U.S. economy back
into recession.
Furthermore, the Senate passed the bill that would allow the U.S.
government to slap heavier import duties on nations it deemed to
be trading unfairly (via currency policies in particular) and require
the U.S. Treasury Department to identified “misaligned currencies”.
While the bill seems to be aimed at China, the U.S. Chamber of
Commerce said that they are not in favor of the motion and feared
that it could hamper growth in trade more than it would bring export
revenues back to the U.S..
FINANCE :
EUR/USD lost gains over the past two days as Slovakia rejected the EFSF in its first round of parliamentary vote
while ECB Chief warns EU leaders of systemic risks to the financial system if debt crisis is not contained.
A few Spanish banks also got their credit ratings downgraded by S&P yesterday on the back of poorer growth
Af S i hb k l t th i dit ti d d d b S&P t d th b k f th
prospects in the economy.
Thai Market : USD/THB closed at 30.95 on Tuesday after the market begins to price in a slower growth of the
economy in the 4th quarter.
GRM : ( Based on JBC – Avg. Weekly ) Crude oil Price Movement
Crude oil prices continued to firm Tuesday despite
Slovakia’s decision to delay a key vote on expansion of
the euro zone bailout fund.
News of an alleged Iranian plot to assassinate Saudi
Arabia’s ambassador in the United States provided
some support.