Market Review 11/12/2009

Dear fellow investor, here a market review today:

* The European DJ Stoxx 50 this morning is up +0.52% and Mar S&Ps are up +4.80 points. The dollar and Treasuries are lower while commodities and global stock markets rallied after China's industrial production grew more than forecast. Nov China industrial production rose +19.2% y/y, more than market expectations of 18.2%, as exports fell the least in 13 months and imports surged, boosting confidence in the worldwide recovery. European mining stocks gained, led by a 2% jump in BHP Billiton, as metals prices rose, and ING Groep NV surged 5.4% after the bank said it will repay 5.6 billion euros ($8.3 billion) in government aid. European leaders say government measures to stimulate the economy should stay in place until the "recovery is fully secured," according to a draft released at the conclusion of a summit in Brussels that ends today. According to the draft, "forecasts suggest a weak recovery in 2010, followed by a return to stronger growth in 2011" and once the r ecovery is in place, governments should rein in their budget deficits by 2011 "at the latest" as long as forecasts by the European Commission "continue to indicate that the recovery is strengthening and becoming self-sustaining."

* The Asian markets today closed mostly higher with Japan up +2.48%, Hong Kong +0.93%, China -0.06%, Taiwan +1.53%, Australia +0.62%, Singapore +0.68%, South Korea +0.02%, India -0.41%. Asian stocks soared after China reported better-than-expected industrial production figures. Asian markets also received a boost after the PBOC said Nov new local-currency loans totaled 294.8 billion yuan ($43.2 billion), more than the 253 billion yuan of new loans in Oct, while China's M2 money supply rose a record +29.74% in Nov y/y. China's banking regulator plans to slow new lending to between 7 trillion yuan and 8 trillion yuan to ensure that there is enough credit to support an economic recovery without increased risks of bad loans and asset bubbles. Despite all of the encouraging economic news, China's Shanghai Composite Stock Index closed -0.06% lower on concern that the government will need to raise interest rates early next year to prevent overheating and to avert asset bubb les.

---
IWAN CAHYO SURYADI, "The Trend is Your Friend"