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Broadgate: Market News 2/5

2 May 2012

Asian stocks rallied and the yen weakened for a second day. It dropped 0.4 percent against the dollar, while gold fell 0.4 percent and oil declined 0.3 percent. These were influenced by reports showing that U.S. manufacturing unexpectedly expanded and a Chinese factory index rose in April. Data from the US and China adds to signs that the world’s biggest economies are recovering, thus boosting the outlook for the region’s exporters.

Amid the positive economic outlook, the odds of more Federal Reserve stimulus diminished as four central bankers said it probably won’t be needed. The FOMC left policy unchanged after its April 24-25 meeting, and Chairman Ben S. Bernanke signaled that further easing is unlikely unless the economy unexpectedly deteriorates.

All western European markets except the U.K., Ireland and Denmark were closed yesterday for the May Day holiday. The Stoxx 600 gained 0.4 percent in trading limited to the three markets after the manufacturing data from the U.S.

The yuan climbed the most in two weeks before talks between U.S. Treasury Secretary Timothy F. Geithner and officials led by Chinese Vice Premier Wang Qishan in Beijing. These talks are expected to include discussion of whether the currency is undervalued. The yuan advanced 0.11 percent, the most since April 17, to 6.3035 per dollar.

Among reports scheduled for release today are data on euro- area manufacturing and unemployment. Another report may show U.S. factory orders declined in March for the second month in three.

EUR/USD

USD/JPY

GOLD

OIL

The information set out herein has been obtained from various public sources and is by way of information only. Broadgate Financial can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.

Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.

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