Thursday, September 30, 2010

20100930 1545 Local & Global Market News.

Malaysia: Ringgit hits new high against the greenback
The Ringgit rose to a fresh 13-year high against the ailing USD yesterday, tracking gains by other regional currencies, as the prospect of stronger economic growth fuelled speculation of further inflows from overseas funds. The Ringgit was traded at 3.0846 against the greenback yesterday, the strongest level since October 1997. (Starbiz)

Taiwan: To weigh interest rate amid property threat
Taiwan’s central bank may discuss raising its benchmark interest rate tomorrow for the second time this year after the island’s economic recovery and the threat of a property bubble added to the case for higher borrowing costs. Governor Perng Fai-nan will increase the benchmark by 0.125 percentage point to 1.5% after the policy board meets, according to 11 of 14 economists surveyed. (Bloomberg)

China: Manufacturing accelerates for a second month
Manufacturing accelerated in China for a second straight month in September, adding to signs the fastestgrowing major economy is stabilizing after policy makers curbed lending in an effort to avert asset bubbles. The purchasing managers’ index released rose to 52.9, the highest level in five months, from 51.9 in August. The data are seasonally adjusted and readings above 50 indicate an expansion. (Bloomberg)

Spain: Credit rating set for Moody’s cut on economy
Spain’s top AAA credit rating, held since 2001, probably will be cut one level by Moody’s Investors Service as the Euro region’s fourth-biggest economy struggles to grow, according to investors managing about USD700bn. Five out of eight money managers surveyed predicted a one-step reduction to AA1, with the rest forecasting a two-level cut to AA2. The decision may come this week after Moody’s put Spain’s debt on review for a possible downgrade on 30 June, saying it would conclude the analysis within three months. (Bloomberg)

EU: European economic confidence unexpectedly improves
European confidence in the economic outlook unexpectedly improved this month as executives and consumers weathered tougher government budget cuts by countries struggling to convince investors that they won’t need external aid. An index of executive and consumer sentiment in the 16 euro nations rose to 103.2, the highest since January 2008, from a revised 102.3 in August, the European Commission in Brussels said. (Bloomberg)

US: Fed presidents far from unanimous on need for further easing
Regional Federal Reserve presidents showed they’re far from unanimous on whether the central bank should try to boost flagging US growth with a second round of unconventional monetary easing. The range of views shows that if Chairman Ben S. Bernanke aims to restart Treasury purchases in November, as some economists project, he may have to do so over the objections of several central bank officials. (Bloomberg)

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