Market Update - 28 May 2013

Just when we all thought that market might go for the turn after last Thursday fear of QE tapering and poor China PMI data, market continues it march higher today, after a long weekend in US and UK.

US market rebounded as of the writing of this article as positive Central Banks comment lend weight to the risk sentiment. Both the Bank of Japan and the European Central Bank reaffirmed that their policies would remain in place.

On Monday, ECB Executive Board member Joerg Asmussen said the policy would stay as long as necessary. On Tuesday, BOJ board member Ryuzo Miyao said it was vital to keep long- and short-term interest rates stable.

And so the invisible hand of the Central Banks continue to hold the risk sentiment. Like I always say, don't fight the central bankers.

In addition, encouraging US data also contributed to the jump in US equity. US consumer confidence came in at 76.2 vs consensus of 69.0. This suggests the resilient of the US consumers despite the fiscal tightening measures.

Upcoming Economic Data

Wednesday:

JPY Bank of Japan Gov. Kuroda speaks at BOJ conference

EUR German Unemployment Change (MAY); EC OECD May Economic Outlook; German Consumer Price Index (YoY) (MAY P)

CAD Bank of Canada Rate Decision

Thursday:

AUD Building Approvals (YoY) (APR)

CHF Gross Domestic Product (QoQ) (1Q)

EUR Euro-Zone Economic Confidence (MAY)

USD Gross Domestic Product (Annualized); Personal Consumption (1Q S); Pending Home Sales (YoY) (APR); Jobless Claim Data

Friday:

JPY National Consumer Price Index (YoY) (APR); Jobless Rate (APR); Household Spending (YoY) (APR); Housing Starts (YoY) (APR)

CNY Manufacturing PMI (MAY)

AUD Private Sector Credit (YoY) (APR)

EUR Euro-Zone Consumer Price Index Estimate (YoY) (MAY)

CAD Quarterly Gross Domestic Product Annualized (1Q)

USD Personal Income (APR); Personal Spending (APR)

And in the domestic SGX market....

Asian Pay Television Trust allocation is out, with the Unit been 5.2X oversubscribed. (can't believe my luck that I actually got none!!)

Anyway, below is the allocation results:

From Company's SGX Disclosure

For more info click here:

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_9AE7DED860A2399D48257B790031C53C/$file/APTTBalloting.pdf?openelement

Interesting Read of the Day:

This was presented at the recently concluded CFA conference. It is a 48minute well spent and I encourage all investors to look at it: http://www.zerohedge.com/news/2013-05-26/grant-williams-do-math