20101012 1239 Local & Global Market News.

Malaysia: August Industrial Production Index rose 4%
Malaysia’s manufacturing sector further signaled moderating external demand growth as y-o-y growth on the Industrial Production Index (IPI) remains at the low single-digit. August IPI was up 4% y-o-y to 107.4, compared with July’s 3.4% rise. The IPI grew mainly due to increases in the manufacturing and electricity indices. YTD, the IPI has increased 9.1% y-o-y. Economists, however, do not expect this to derail the country’s economic growth significantly. (Financial Daily)

China: Trade surplus poised to cap biggest quarter since crisis.
China may tomorrow report a USD17.8bn trade surplus for September that would cap the biggest quarterly excess since the financial crisis in 2008, adding fuel to US calls for import protection. The median estimate of 24 compares with an August surplus of USD20bn. That would take the third-quarter total to USD66.5bn, the largest since the fourth quarter of 2008. (Bloomberg)

EU: French August industrial output unexpectedly stalls
French industrial production unexpectedly stalled in August, suggesting a recovery in the euro region’s secondlargest economy is losing momentum. The increase in output in July was revised lower to 0.8% from the 0.9% originally reported. Economists had forecast a 0.3% increase in August. Output climbed 3.2% from a year earlier. (Bloomberg)

EU: Italian industrial output rises most in seven months
Italian industrial production rose the most in seven months in August as gains in exports more than offset weak domestic demand. Output climbed 1.6% from July, when it increased a revised 0.3%. Economists had forecast a 0.1% in August. Output jumped 9.5% from a year earlier. The Finance Ministry said on 29 September that gross domestic product will expand 1.2% in 2010, up from 1% predicted on May 6. (Bloomberg)

Australia: Home-loan approvals climbed 1% in August
Australian home-loan approvals climbed in August for a second straight month, adding to the case for the central bank to resume raising interest rates. The number of loans granted to build or buy houses and apartments matched economists’ estimates and gained 1% to 47,540 from a month earlier, when they rose a revised 1.8%. A rebound in demand for home loans, which tumbled for seven straight months through April as the central bank embarked on the most aggressive round of interest-rate increases by a Group of 20 members, may bolster economic growth in the second half of the year. (Bloomberg)

US: Economists cut US growth forecast through 2011
The US economy will expand less than previously estimated as a lack of jobs restrains consumer spending through 2011. GDP will increase 2.6% this year and next, according to the median of 46 economists surveyed by the National Association for Business Economics. A May poll projected growth of 3.2% for both years. Economists also cut estimates for personal spending, employment and consumer prices. Consumer spending adjusted for inflation will expand 1.5% in 2010 and 2.3% in 2011, according to the NABE survey. Median projections in May for this year and next were 2.6% and 2.8%, respectively. (Bloomberg)