Saturday, September 4, 2010
A quiet week with very thin market conditions as summer holidays slowly end and we waited for August’s US Non-Farm Payroll (a better than expected –54K). Equity indices rallied, most erasing the losses of the last two or three weeks, Jakarta (3164) to a new record and Malaysia (1,441) its best since January 2008’s peak at 1,524. Currencies were mixed, yen (83.66) and Swiss francs (1.0065) originally in demand but reversing on Friday’s numbers, the Singapore dollar setting a new record of 1.3419 per greenback as did EUR/CHF 1.2850. Benchmark yields rallied, some from record lows, the moves most pronounced in the JGB’s (10-year from 0.90% to 1.15%). Many index-linked issues set new record lows yields, then stabilised close to these points. Spot Gold at $1,245.65 is very close to its record high and Silver $19.68 not that far off 2008’s record $21.24. ICE Cotton at 91.80 cents per pound is two standard deviations above the long term mean, Pakistani floods affecting availability, likewise CME Live Cattle at 98.70 cents. Baltic Freight Rates up from depressed levels, trading around the mean of the last two years or so.