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DAILY MARKET UPDATE THURSDAY, APRIL 08, 2010

EQUITIES _______________________________________________________________________________

Switzerland Europe

Swiss Reinsurance Co. (RUKN VX) Scor SE (SCR FP)

• The world’s second-biggest reinsurer said it
completed a share buyback, purchasing 26.2mln
shares for CHF 2.1bln. Swiss Re commented today
in an e-mailed statement.
Baloise Holding AG (BALN VX)
• Switzerland’s third-largest insurer had its price
estimate lifted to 107 francs from 101 francs at
HSBC Holdings Plc.
• The company obtained a composite reinsurance
license in China, enabling it to sell life and health
reinsurance.
British Airways PLC (BAY LN) and Iberia (IBLA SM)
• British Airways and Spanish carrier Iberia signed a
merger agreement on Thursday, sealing a long-
awaited deal to create Europe's second largest
airline by passenger kilometres.

Orell Fuessli Holding AG (OFN SW) Hennes & Mauritz AB (HMB SS)
• The publisher and bookseller said it is cautiously • The Swedish fashion chain posted strong Q1
optimistic about 2010. The company set a figures. Profits rose 45%, with net profit at 3.7bln
dividend of 2.5 francs per share. Kronor ($511mln), up from 2.6bln Kronor in the
same period a year ago.

USA

Future Current Chg Pct 1d Trend

DJIA . Jun ’10 10829 -0.18%

S&P 500 Jun ’10 1177.1 -0.16%

Nasdaq 100 Jun ‘10 1973.75 -0.06%

U.S. Market News

US Airways Group Inc. (LCC: US): The New York Times reported that the airline is in talks about a merger with rival
UAL Corp. (UAUA: US), the parent of United Airlines, citing unidentified people familiar with the matter. Houston
American Energy (HUSA: US): The energy company said an Internet posting that it is on the verge of collapse was
“unwarranted and outrageous.” Houston American responded in a PRNewswire statement to an item on the
Seeking Alpha website after its shares fell 29 percent. The company also said it isn’t a party to any litigation. Forest
Laboratories Inc. (FRX: US): The drugmaker failed to win a U.S. panel’s backing to sell a new treatment for flare-ups
of a common lung ailment.
COMMODITIES ___________________________________________________________________________
Oil
Oil declined for a second day after a government report yesterday showed a bigger-than-forecast inventory
gain in the U.S., the world’s largest energy consumer. Oil dropped as the Energy Department said crude supplies
rose 1.98 million barrels to 356.2 million last week. Stockpiles were expected to climb by 1.35 million barrels,
according to a Bloomberg News analyst survey. Machinery orders in Japan, the world’s third-largest oil user,
unexpectedly fell in February. Crude oil for May delivery fell as much as 39 cents, or 0.5%, to $85.49 a barrel and
was at $85.74 in electronic trading on the New York Mercantile Exchange at 11:55 a.m. Singapore time.
Yesterday, the contract declined 96 cents, to settle at $85.88, dropping from an 18-month intraday high of
$87.09 made April 6. Orders for factory equipment and items such as power generators, an indicator of business
investment in three to six months, declined 5.4% from January, the Cabinet Office said today in Tokyo. The
median estimate of 31 economists surveyed by Bloomberg was for a 3.7% gain.

Gold
Gold dropped for the first time in four days as a stronger dollar and the metal’s rally to a three month high
encouraged selling. Bullion for immediate delivery fell as much as 0.3% to $1,145.50 an ounce, and traded at
$1,145.80 at 10:10 a.m. in Singapore. Gold jumped to $1,153.20 yesterday, the highest level since Jan. 12, as
investors sought a hedge against falling currencies. In euros, the metal reached a record 863.466 euros
yesterday.

Soft Commodities
Wheat and corn fell as the dollar gained, making U.S. crops more expensive for holders of other currencies and
on speculation that global supplies of the grains may be larger than earlier estimates. Wheat for July delivery lost
0.7% to $4.8525 a bushel on the Chicago Board of Trade at 10:44 a.m. Singapore time, while corn for May
delivery fell 0.3% to $3.5525 a bushel at the same time. The Dollar Index, which tracks the value of the currency
against the counterparts of six major trading partners, rose for a third day. The U.S. Department of Agriculture
may raise its estimates of global stockpiles of wheat, corn and soybeans in its report tomorrow as output
expands, according to the average estimate of 11 analysts surveyed by Bloomberg News. The U.S. Department
of Agriculture may raise its estimate of global wheat inventory to 197.13 million tons, from 196.77 million tons a
month earlier, according to the Bloomberg News survey. The latest USDA estimates will be released at 8:30 a.m.
in Washington tomorrow. The global corn stockpiles estimate for this year may be raised to 143.61 million metric
tons, from 140.15 million tons in February, while the soybean inventory forecast may be boosted to 61.66 million
tons, from 60.67 million tons, according to the Bloomberg News survey.

FX ____________________________________________________________________________________
The euro declined for a fifth day versus the dollar as stagnating growth in the region and concern Greece will
default damped demand for the region’s assets. The 16-nation currency fell for a fourth day versus the yen
before a European Central Bank meeting where policy makers are forecast to keep interest rates at a record
low to spur growth. The yen rose against all 16 of its most-traded counterparts as Asian stocks dropped, boosting
appetite for the relative safety of Japan’s currency. Australia’s dollar was near an 11-week high after a
government report showed the nation added more workers last month. The euro fell to $1.3327 as of 1:47 p.m. in
Tokyo from $1.3344 yesterday in New York, extending its losing streak to the longest since January. The European
currency declined to 124.23 yen from 124.57 yen. The yen advanced to 93.21 per dollar from 93.36. Australia’s
dollar was at 92.74 U.S. cents from 92.68 cents yesterday when it climbed to 92.98, the highest since Jan. 15.

FIXED INCOME ___________________________________________________________________________

Treasuries fell, snapping a two-day gain, before a government report that economists said will show initial claims
for jobless insurance declined to a 19-month low. Yields are poised to climb as claims drop and the U.S. adds
jobs, according to Deutsche Bank Securities Inc., one of the 18 primary dealers that are required to bid at debt
sales. Federal Reserve Bank of Kansas City President Thomas Hoenig said policy makers should consider
increasing interest rates “sometime soon.” The U.S. plans to sell $13 billion of 30-year bonds today, after bidding
rose at a 10-year sale yesterday. The yield on the benchmark 10-year note rose two basis points to 3.87% as of
12:54 p.m. in Tokyo, according to data compiled by Bloomberg. The 3.625% security declined 1/8, or $1.25 per
$1,000 face amount, to 97 31/32.
GLOBAL FIGURES ___________________________________________________________________________________________
Equities Commodities
Index Current Change % Change % YTD Index Current Net Change 1d Change % YTD
MSCI World 1'213 -0.39% 3.84% GSCI ER 448.38 -2.55 1.69%
SPX 1'182 -0.59% 6.04% GSCI Agriculture ER 50.14 0.70 -16.22%
INDU 10'898 -0.66% 4.50% GSCI Livestock ER 216.31 1.93 8.61%
NDX 1'977 -0.23% 6.29% GSCI Precious Metal ER 169.60 2.50 5.24%
SX5E 2'975 -0.50% 0.33% GSCI Industrial Metal ER 266.72 -1.82 6.08%
DAX 6'222 -0.48% 4.45% GSCI Energy ER 286.18 -3.05 4.28%
SMI 6'843 -0.62% 4.55% AIG ER 135.09 -0.01 -2.95%
UKX 5'762 -0.32% 6.45% WTI 85.81 -0.07 5.79%
CAC 4'027 -0.67% 2.30% Brent 85.59 -0.56 6.93%
NKY 11'175 -1.04% 5.96% Natural Gas 4.00 -0.02 -27.94%
HSI 21'892 -0.17% 0.09% Gold 1'148.10 -4.90 4.49%
IBOV 70'793 -0.43% 3.21% Silver 18.18 -0.02 7.76%
KOSPI 1'724 -0.13% 2.48% Aluminium 2'321.25 -12.75 5.66%
SENSEX BSE 30 17'907 -0.35% 2.53% Copper 7'908.00 -42.50 0.00%
RTSI 1'610 -0.25% 11.44% Zinc 2'372.25 -49.00 -7.57%
Tin 18'515.00 165.00 9.14%
Volatility Nickel 24'684.00 -125.00 33.12%
Current Net Change WTD Net Change 1m Lead 2'266.75 -9.75 -6.99%
VIX 16.62 -0.85 -1.17 Corn 354.75 -1.75 -16.38%
VSTOXX 21.15 1.15 -0.95 Wheat 485.50 -3.25 -14.22%
VDAX 18.63 0.78 -0.93 Soybean 953.00 0.50 -9.56%
VSMI 14.25 0.38 -0.77 Sugar 16.16 0.27 -35.95%
Cocoa 2'882.00 -63.00 -12.85%
Currencies Coffee 137.55 -1.65 -0.04%
Current Change % 1d Change % YTD Cotton 81.23 0.25 6.06%
USD/CHF 1.0748 -0.08% 3.68% Live Cattle 94.53 -0.23 7.75%
USD/JPY 93.2100 0.16% 0.20% Feed Cattle 114.08 -0.17 15.52%
CHF/JPY 86.7200 0.24% -3.62% Lean Hogs 84.48 -0.13 9.32%
EUR/USD 1.3328 0.12% -7.45%
EUR/CHF 1.4326 0.03% -3.56% Credit
GBP/CHF 1.6362 0.04% -2.30% iTraxx Europe IG 5yr 63.56
USD/BRL 1.7813 -1.58% 2.07% iTraxx Europe Crossover 5yr 401.18

Libor Rates Swap Rates

USD EUR CHF GBP JPY USD EUR CHF GBP JPY
1M 0.25 0.37 0.09 0.55 0.16 1Y 0.56 1.12 0.49 1.05 0.44
3M 0.30 0.58 0.25 0.65 0.24 2Y 1.22 1.48 0.84 1.61 0.47
6M 0.45 0.89 0.34 0.88 0.45 5Y 2.78 2.43 1.62 2.94 0.74
12M 0.94 1.19 0.64 1.32 0.68 10Y 3.85 3.29 2.35 3.89 1.44

ECONOMIC INDICATORS OF THE WEEK

US: Date Event Survey Actual Prior

07.04.2010 Consumer Credit (February) $ -0.2bn $ -11.5bn $ 5.0bn
08.04.2010 Initial Jobless Claims 435k - 439k

EU: Date Event Survey Actual Prior

06.04.2010 Sentix Investor Confidence (April) -5.2 2.5 -7.5
07.04.2010 Euro-Zone PPI (YoY) -0.4% -0.5% -1.0%
08.04.2010 Euro-Zone Retail Sales (YoY) -0.4% - -1.3%

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