Market Gazer Hong Kong - Japan - Germany - UK - North America

market review : Europe & U.S. GDP to rise 2.3%, down from earlier estimate
of 2.9% growth.
Shares in Germany and U.K. remained solid
German factory orders rose beyond
throughout Wednesday, with DAX climbed
expectations in August. Month-on-month,
54.90 points, or 0.88% to 6,270.73 and FTSE
orders were up 3.4%, reversing a 2.2% decline
100 gained 45.63 points or 0.81% to end at
in July and above the expected increase of
5,681.39. U.S. shares however, ended mixed
0.9%. Year-on-year, orders jumped 20.3%,
with DJIA rose 22.93 points or 0.21% to
above the expected rise of 17.2% and also
10,967.65 while Nasdaq Composite and S&P
beat July’s rise of 17.7%.
500 indexes ended in the red at 2,380.66 and
1,159.97, respectively.
Allianz SE plans to
step up its
The troubled Ireland faced another
investments in real-
downgrade as Fitch Ratings cut its rating from
AA- to A+ on the back of larger than expected estate from €17 billion to €30 billion to
counter lower returns from other assets such
bailout cost of €50 billion to help its ailing
as fixed-income securities and equities. The
banking system. Ireland have just recently
plan will be undertaken in coming years, but
incurred a downgrade from Moody’s and
for now the company’s property division will
Fitch’s downgrade also accompanied by the
be adding another €1 billion by the end of the
warning that rating could be further lowered
if economy and political outlooks deteriorate. year to the current €1.5 billion investments in
real estate. The European insurer advanced
1.78% to €84.59.
Gold continues to
advance, hitting $1,351
Deutsche Bank completed its share sale to
on Wednesday, while
finance its acquisition of Deutsche Postbank
USDJPY hit ¥82.74 on
AG and also to add more reserves to the bank.
the back of the dollar
The share sale worth €10.2 billion, of which
weakness. Against euro
2.13 million of the total shares will be sold on
however, yen remains weak as the EURJPY
the stock exchange. Postbank addition
pair marched higher to ¥115.63.
provides DB another 24 million retail clients.
Currently, DB trades at €41.15 or up 1.49%.
ADP employment report showed private jobs
declined 39,000 in September, dumbfounding
the market consensus which expected a rise Volkswagen AG sets sights on
China as the company plans to
of 20,000 jobs. The reading was also worse
release a mid-sized sedan model
than the addition of 10,000 jobs occurred in
August. ADP result pointed at a possible to be sold in China. The model will
be priced around $20,000 each. VW’s
worse than expected U.S. non-farm payrolls
preferred stocks settled at €84.95, up 1.2% on
next Friday.
Wednesday.
Elsewhere, the IMF revised its forecast of U.S.
ThyssenKrupp AG’s pretax profit for the fiscal
economic growth prospects from 3.3% to
2.6% in 2010, while for 2011 IMF expected year through September is seen at €1 billion,
according to CEO Ekkehard Schulz as quoted

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06 October 2010 Page 1
 Market Gazer Hong Kong - Japan - Germany - UK - North America

in Handelsblatt. The steelmaker has been able
to bounce back from a pretax loss of €2.4
billion incurred last year, thanks to its efforts
to trim costs. The shares finished at €24.92,
up 1.78% by the end of the day.
General Electric is set to buy
Dresser Inc. for $3 billion,
expanding its industrial unit. The
oil-field equipment producer is expected to
contribute around 1 cent to GE in terms of
profit throughout the coming years. The deal
boosted GE to $16.9, rising 2.36%.
production data from U.K. and also industrial
production data from Germany.
Note that Thursday will feature Alcoa Inc.’s
earnings results for 3Q. Consensus lies around
$0.06 to $0.07 while in 2009 the 3Q EPS was
at $0.04. The report will be announced after
the market closed.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.

Motorola sued Apple Inc. regarding its iPad

and iPhone which had been said to have
infringed 18 of Motorola’s patents. Motorola
dipped 0.93% to $8.56 while Apple stayed
positive at $289.19 after rising 0.09%.

On upgrades and
downgrades, Texas
Instruments has been started at NEUTRAL by
Sterne Agee, while Coca-Cola has been re-
assigned at OUTPERFORM by Credit Suisse.
Coca-Cola added 0.23% but Texas Instruments
fell 0.06%. U.K. insurer Prudential has been
upgraded to EQUAL WEIGHT from
UNDERWEIGHT by Barclays.

economic data preview 

Poor ADP reading has soured the mood as the

upcoming non-farm payrolls figures may also
disappoint the market. Still, Thursday will see
jobless claims data to be released. Claims are
expected to be at 455K, up from 453K in the
previous week.

In Europe, Bank of England and the European

Central Bank will deliver their decisions on
interest rates, while economic data will
feature industrial and manufacturing

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06 October 2010 Page 2