Asian Markets open higher today as S&P and Dow hit fresh high
overnight.
NZD and AUD traded higher on the back of better employment data from both
countries
Bank of Korea slashed its rates this morning by 25bps to 2.5%.
Looking ahead, we will have BoE meeting today. This will be the last
meeting for Meryvn King before Mark Carney take over as the Governor of BoE
next month. The big question today is whether BoE will increase the size of its
Asset Purchase Scheme (APS). Well, central banks around the world seems to be
cutting rate for fun and why shouldn't BoE join in. Although I don't expect a
rate cut, I suspect a dovish statement coming out of the meeting and I think
GBP might weaken from current level.
Well the bull continues to take charge on market and did someone say
"sell in May" obviously no one is looking at the calendar.
Interesting Read of the Day:
- Paulson Bid to Resurrect
Reputation Hurt by Gold Gone Bad. It talks about how a Mr Paulson got too
confident in himself and how he seeks to resurrect his reputation: http://www.bloomberg.com/news/2013-05-08/paulson-bid-to-resurrect-reputation-hurt-by-gold-gone-bad.html
- An interesting research from the guys of NY Feb
on their stand if stock is cheap. Apparently they think that we will continue
to enjoy high excess return on S&P for the next 5 years. A story for the
bull: http://libertystreeteconomics.newyorkfed.org/2013/05/are-stocks-cheap-a-review-of-the-evidence.html
- Finally, a story for the bear, 12 indicators that
our US economy might be heading for a recession despite the equity rally. Take
COVER~ http://www.zerohedge.com/news/2013-05-08/price-copper-and-11-other-recession-indicators-are-flashing-red
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