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DAILY MARKET UPDATE THURSDAY, MARCH 18, 2010

EQUITIES _______________________________________________________________________________

Switzerland Europe

Baloise Holding AG (BALN VX) Merck KGaA (MRK GY)

• Baloise said its 2009 profit rose 8.9% to CHF
421mln from CHF 386.7mln in the previous year,
the company said on its Web site today.
UBS AG (UBSN VX)
• UBS said it will ask for shareholders’ approval to
create conditional capital, giving the bank
flexibility to increase its core tier 1 capital by a
maximum of 10%.
Novartis AG (NOVN VX)
• Novartis won marketing approval from the
European Commission to sell the Menveo
vaccine to prevent meningitis in people older
than age 11. Novartis plans to submit additional
data to the European Medicines Agency to win
approval of Menveo in other age groups.
• The German chemicals and drugmaker said it
successfully issued a Eurobond in three portions,
including € 0.5bln ($ 0.7bln) of two-year bonds, €
1.35bln maturing in five years and € 1.35bln due
in 10 years.
Hamburger Hafen und Logistik AG (HHFA GY)
• The main operator of Germany’s biggest port
wants to cut extra pay for weekend and
overtime hours of about 1,000 workers to save
several million euros, Hamburger Abendblatt
said.
Intesa Sanpaolo SpA (ISP IM)
• Italy’s second-biggest bank said its Fideuram
banking unit filed a request with the Italian stock
exchange and the equity market regulator to list
shares.

USA

Future Current Chg Pct 1d Trend

DJIA . Mar ’10 10717 -0.08%

S&P 500 Mar ’10 1166 0.03% 
Nasdaq 100 Mar ‘10 1936.5 0.28% 

U.S. Market News

Guess? Inc. reported Q1 2010 net earnings of $ 86.6mln, an increase of 80.7% compared to Q1 2009. Nike Inc.
posted Q3 2010 net income of $ 496.4mln, compared to $ 243.8mln in Q3 2009. Cardinal Health Inc., the second-
biggest U.S. drug distributor won a contract valued as much as $ 206.4mln from the U.S Defense Department,
according to a statement posted on the agency’s Web site. (Bloomberg)
COMMODITIES ___________________________________________________________________________
Oil
Crude oil fell for the first time in three days as an increase in the dollar caused investors to sell contracts and lock
in gains after prices reached a 10-week high yesterday. Oil also dropped after an Energy Department report
showed that U.S. crude inventories climbed for a seventh week. Total fuel demand, in terms of products supplied
by refiners, also dropped by 4.2% to 18.8 million barrels a day, the biggest one-week decline since the week
ended Nov. 6. Crude oil for April delivery dropped as much as 63 cents, or 0.8%, to $82.30 a barrel in electronic
trading on the New York Mercantile Exchange. It was at $82.39 at 1:41 p.m. Singapore time. Yesterday, the
contract gained $1.23, or 1.5%, to settle at $82.93, the highest close since Jan. 6. The dollar index, which
measures the greenback against six other major currencies, gained 0.4% to 79.95 today at 1:19 p.m. Singapore
time. It traded at $1.3683 per euro from $1.3738 yesterday. U.S. crude oil stockpiles climbed 1.01mln barrels to
344mln barrels last week, the Department said. That’s 5% higher than the five year average.

Gold
Gold climbed for a third time in four days as concerns about widening European deficits resurfaced, prompting
investors to seek a haven investment. Bullion for immediate delivery gained as much as 0.4% to $1,125.15 an
ounce, and traded at $1,123.48 at 10:28 a.m. in Singapore. Gold priced in euros traded near a one-week high
as the 16-nation currency fell after a spokesman for Germany’s ruling party said Greece should go to the
International Monetary Fund if it needs aid. Gold futures for April delivery were little changed at $1,123.20 an
ounce on the Comex in New York, while June-delivery gold on the Shanghai Futures Exchange slid 0.6% to
248.73 yuan a gram ($1,133 an ounce). The dollar rose for the first day in three on speculation China will tighten
monetary policy and before a report that economists said will show U.S. consumer prices rose by the least in
seven months in February. Gold tends to move alongside the dollar in times of crisis as investors seek safer assets.

Soft Commodities
Wheat, corn and soybeans declined in Chicago as the dollar gained, making U.S. crop supplies less attractive to
investors and importers. Wheat for May delivery fell 0.9% to $4.9175 a bushel on the Chicago Board of Trade at
10:51 a.m. Singapore time, after closing 1.9% higher yesterday. Corn for delivery in the same month declined
0.7% to $3.715 a bushel, while soybeans lost 0.8% to $9.515 a bushel. The Dollar Index, which tracks the value of
the greenback against six currencies, rose for the first time in three days on concerns that China may order
banks to halt loans to speculators and that Greece may struggle to curb its budget deficit. Wheat futures had
the biggest closing gain in two weeks yesterday, while corn ended 2% higher, the biggest advance since Feb.
24. Soybeans were up 1.5% yesterday at $9.59 a bushel, the highest closing price in two weeks.

FX ____________________________________________________________________________________
The yen and dollar strengthened as demand revived for safer assets on doubts over a possible rescue plan for
Greece and concern China is taking steps to rein in speculation. The yen gained against all of its 16 most-active
counterparts after a China Securities Journal report said regulators in the world’s fastest-growing major economy
forced banks to stop lending to some developers. The euro extended its decline for a second day against the
dollar on concern European leaders will struggle to agree on aid for Greece. The yen rose to 123.41 per euro as
of 2:42 p.m. in Tokyo from 124.06 yesterday in New York. The dollar advanced to $1.3685 per euro from $1.3738.
The U.S. currency traded at 90.18 yen from 90.31 yen. Canada’s dollar traded at C$1.0130 to the U.S. currency
after yesterday climbing to C$1.0071, its strongest level since July 2008.

FIXED INCOME ___________________________________________________________________________

Treasury 10-year notes rose for a fifth day after a Dow Jones report said Greece was not hopeful of getting aid
from the European Union at a meeting next week, spurring demand for safer assets. Yields also fell to the lowest
level in two weeks before a government report that economists said will show inflation slowed last month,
helping preserve the value of the fixed payments from debt. The Treasury is scheduled to announce today the
amounts of two-, five- and seven-year notes it will sell next week. The yield on the benchmark 10-year note
dropped two basis points to 3.62% as of 6:07 a.m. in London, according to BGCantor Market Data. The 3.625%
security due February 2020 advanced 5/32, or $1.56 per $1,000 face amount, to 100 2/32. Greece may seek
financial aid from the International Monetary Fund over the April 2 to April 4 Easter weekend, Dow Jones
reported, citing a senior Greek official it didn’t name. Consumer prices climbed 0.1% in February after gaining
0.2% the previous month, according to a Bloomberg News survey before today’s report. A Labor Department
report yesterday showed wholesale prices fell more than economists expected in February. The difference
between 2- and 10-year yields was 2.72% points. The spread shrank to 2.71% points yesterday, the narrowest
since Jan. 4.
GLOBAL FIGURES ___________________________________________________________________________________________
Equities Commodities
Index Current Change % Change % YTD Index Current Net Change 1d Change % YTD
MSCI World 1'203 0.74% 2.91% GSCI ER 438.57 5.46 -0.54%
SPX 1'166 0.58% 4.58% GSCI Agriculture ER 52.18 0.66 -12.81%
INDU 10'734 0.45% 2.93% GSCI Livestock ER 210.81 0.43 5.85%
NDX 1'936 0.21% 4.08% GSCI Precious Metal ER 165.27 0.40 2.56%
SX5E 2'931 0.87% -1.13% GSCI Industrial Metal ER 255.45 4.23 1.59%
DAX 6'024 0.89% 1.12% GSCI Energy ER 277.76 3.63 1.21%
SMI 6'892 0.26% 5.29% AIG ER 134.20 1.30 -3.58%
UKX 5'645 0.43% 4.28% WTI 82.31 -0.62 2.08%
CAC 3'958 0.48% 0.55% Brent 81.96 1.43 2.40%
NKY 10'744 -0.95% 1.87% Natural Gas 4.27 -0.04 -22.52%
HSI 21'419 0.16% -2.07% Gold 1'122.90 -1.30 2.31%
IBOV 69'723 -0.31% 1.65% Silver 17.42 -0.10 3.28%
KOSPI 1'675 -0.46% -0.45% Aluminium 2'261.00 36.50 2.91%
SENSEX BSE 30 17'469 -0.12% 0.03% Copper 7'488.00 146.50 0.00%
RTSI 1'564 0.06% 8.29% Zinc 2'330.25 40.00 -9.21%
Tin 17'702.00 200.00 4.35%
Volatility Nickel 22'232.00 350.00 19.89%
Current Net Change WTD Net Change 1m Lead 2'239.50 35.00 -8.10%
VIX 16.91 -0.67 -3.72 Corn 370.25 -3.75 -12.73%
VSTOXX 20.46 -1.47 -4.14 Wheat 491.75 -4.25 -11.40%
VDAX 18.33 -0.08 -3.90 Soybean 950.25 -8.75 -9.82%
VSMI 14.54 -0.89 -3.16 Sugar 18.33 0.09 -27.35%
Cocoa 2'905.00 57.00 -12.24%
Currencies Coffee 133.60 0.85 -2.91%
Current Change % 1d Change % YTD Cotton 81.34 0.17 6.20%
USD/CHF 1.0574 -0.60% 2.14% Live Cattle 94.08 0.10 7.24%
USD/JPY 90.1400 0.00% -3.33% Feed Cattle 107.73 0.38 9.09%
CHF/JPY 85.2400 0.60% -5.60% Lean Hogs 81.55 0.52 5.53%
EUR/USD 1.3679 0.71% -4.77%
EUR/CHF 1.4465 0.10% -2.53% Credit
GBP/CHF 1.6159 -0.09% -3.40% iTraxx Europe IG 5yr 62.66
USD/BRL 1.7670 0.02% 1.27% iTraxx Europe Crossover 5yr 430.75

Libor Rates Swap Rates

USD EUR CHF GBP JPY USD EUR CHF GBP JPY
1M 0.24 0.37 0.09 0.54 0.16 1Y 0.49 1.10 0.45 0.84 0.44
3M 0.27 0.59 0.25 0.65 0.24 2Y 1.08 1.50 0.78 1.61 0.46
6M 0.40 0.90 0.33 0.87 0.45 5Y 2.58 2.42 1.58 2.92 0.72
12M 0.86 1.20 0.63 1.32 0.68 10Y 3.66 3.31 2.34 3.88 1.42

ECONOMIC INDICATORS OF THE WEEK

US: Date Event Survey Actual Prior

15.03.2010 New Motor Vehicle Sales January (MoM) 0.0% 0.0% 2.6%
16.03.2010 Housing Starts February(MoM) -3.6% -5.9% 2.8%
17.03.2010 Producer Price Index February (MoM) -0.2% -0.6% 1.4%
18.03.2010 Initial Jobless Claims (March 13) 455k -- 462k
19.03.2010 Consumer Price Index February (YoY) 1.4% -- 1.%

EU: Date Event Survey Actual Prior

16.03.2010 Euro-Zone CPI February (YoY) 0.9% 0.9% 0.9%
18.03.2010 Euro-Zone Trade Balance January -4.0bn -- 4.4bn

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