Market update by UWCFX
 

09.08.2011

Panic sell continues
GOLD reaches 1775

Black Monday seems to be followed by a bleaker Tuesday. Wall Street saw one of its worst falls when world markets
continued its free fall. Investors desperately leaving stocks looking for other outlets. Treasuries soared while GOLD broke new records reaching 1785 in Asian trade.

President Barack Obamas assurances that US was still a triple rated country which honoured its obligations did not calm markets. While the President spoke, Dow Jones, NASDAQ and SAP fall to new lows and Gold soared, demonstrating the worst political confidence crisis since autumn of 2008. No big expectations for Fed Chief Bernanke

10.08.2011
 

DOW jumps 4 %
on FED statement

DOW Jones bounced back at the end of yesterday

Markets on 11.08.2011
 

Stocks back in red
Gold passes 1800

The relief rally in stocks lasted some few hours before markets were back in red.

Yesterday good night sessions in Asia was followed by opening optimism in Europe.

But after some few hours trading the European exchanges were back in deep red.
Speculation on possible downgrading this time of France

12.08.2011
 

Stocks make come
back in market rally

Stock globally made a strong comeback yesterday with markets rallying in late European sessions. Dow Jones
Sky-rocketed with 3,9 % and Asian markets ended in positive territory after days with consecutive big losses.

Investors demonstrated bigger risk appetite and sent Gold down close to hundred dollars from its peak on
1815. Gold stabilized in Asia and is now trading at 1865. Funds went from treasuries into stocks. Strong correction
in Swiss Franc after central bank intervention. Dollar is slightly stronger against most currencies except YEN.

The rally came on the back drop of slightly better employment figures from the US. Job claims for June was down from 402 000
in May to 395 000. US trade balance figures for June did, however, show a decline in export and record deficit.

France, Spain and Italy have along with Asian markets introduced prohibition against short selling
echoing measures taken during the 2008 crisis. Measures are taken in effort to stabilize bank stocks which have been in free fall.

Oil is up from its lows with Brent trading on USD 107 signalizing some optimism for growth., but volatility
and nervousness are just around the corner indicating that the stock rally shall prove short lived.

16.08.2011
 

The week has started on a positive note with market stabilizing after last weeks turmoil. Europe followed
the upward trend from Asia. Dow Jones added 1,90 % and Nasdaq 1,88 %. Asia continues slightly up
this morning.

Guru investor Warren Buffet is on a buying spree, and declared stocks at sales at present prices.

While some of the nervousness, at least for now, seems to be have lost its grip grip in the United States, new
crisis loom around the corner in Europe. Euro-bonds which would have given at Euro zone a necessary
injection and an insurance against sovereign defaults is not on the agenda for the Merkel -
Sarkozy meeting today.

Amidst the uncertainty Euro rose to its highest two weeks level against USD; 1.4450. USD is also loosing
ground towards other currencies while gold is up from yesterday

Market update - 17.08.2011
 

Eurobond is not
at agenda for now

Merkel and Sarkozy yesterday agreed on stronger financial and fiscal bilateral co-ordination, but stopped short of
introducing the Eurobonds many observers had hoped for. The markets reacted negatively. Dow and Nasdaq fell
on continued debt crisis fears in Europe. Shanghai was up, but other Asian markets ended flat. Europe is set to open
down. US futures are slightly up.

Dollar is gaining ground against EURO trading at 1.4385. Gold is close to all time high on 1785 while
oil prices are steady on Brent USD 109 levels. Swiss franc is down fourth day in row following Central
Bank intervention and rumours that Swiss authorities want to see the Franc pegged to EURO.

18.08.2011
 

Gold continues
outshining markets

Gold continues to be the preferred safe haven reaching an end of the day record 1795 yesterday close to the inter day high, 1817, set on August 8th.

Gold is up for a sixth straight month outshining all other metals and equity classes. No end seems to be in sight. Predictions for 2011 is set to 2000, and Standard chartered bank has 5000 in sight for 2020 as Gold is seen as the best hedge against inflation.

Why is money continuing to flow into Gold? The debt crisis in Europe, uncertainties regarding economic growth in the United States
and a consequent slow down in Asia dominate. India with 9 % inflation is by far the biggest buyer of Gold. Central Banks all over the world are storing gold, and the Russian and Mexican central banks are predicted to be the bg buyers in 2012.

No wonder that gold shines.

After three

19.08.2011
 

Global markets
fear recession

Global markets ended in deep red yesterday after one of the worst sell off's markets have seen. Germany was down a record 5,92 %. Sell off's continued with DOW and Nasdaq falling steeply and in Asia where the KOSPI was especially hard hit. European stock futures are pointing down. Gold reached a new record high on 1851. Oil prices are tumbling. Brent trading at 106 down 5 $ since yesterday.

After a couple of optimistic days panic has again stricken the markets. In spite of some good economic data from the US, investors have already started to price in a double dip recession. Markets were in blood red yesterday and futures are pointing down.

The Merkel-Sarkozy Summit in Wednesday did nothing to calm investor

23.08.2011
 

GOLD rush among
investors continue

Five days after Gold broke 1800, the precious metal smashed through the 1900 level with investors panicking into Gold as
the preferred safe haven. 1908 represents a temporarily new record set during last night

30.08.2011
 

Optimism rules
in strong markets

The optimistic sentiments which have ruled the markets since Bernanke

31.08.2011
 

Mixed sessions
Gold recovers

After a mixed session were markets tried to fight off negative news as reduced US consumer optimism Dow Jones tipped into positive territory and ended slightly up; 0,18 % and Nasdaq (0,55 %) following suit. Asian markets were mixed with the South Korean KOSPI gaining after a 15 % free fall during August. European markets dipping between red and blue.

Gold made a strong recovery with 1835 after last days profit taking and some renewed optimism for equities. The US index for
consumer sentiment, poured some cold water back in the head of investors thinking that the bottom is reached and the worst over in stock markets. Oil prices are up. Brent is trading on 114 this morning, the highest level seen for weeks.

Dollar gained ground against the EURO at 1.4429 telling it

01.09.2011
 

Chinese industry stagnates
raises fear of stagflation

World markets have seen a temporary stabilization during the first three trading days of the week. European markets
ended up, while US struggled before DOW and Nasdaq finished in blue for the fourth consecutive day. In Asia the South Korean,
Kospi, jumped 2,5 % gaining back some of the steep losses from first weeks of August.

The Euro is loosing ground. Euro/USD is again down at 1.4355. Yen somewhat weaker towards the dollar at 76,83. Gold
at 1822, loosing USD 12 from yesterday

02.09.2011
 

Pessimism back with
Asian markets in red

Pessimism ruled in Asia Friday morning with falling markets in nervous waiting for unemployment figures
coming out of the US later during the day. The Japanese Nikkei was down 1,4 % followed by 1,3 % both in
Shanghai and Hongkong. South Korean Kospei is falling 1,3 %. In US both Dow (- 1,03 %) and Nasdaq (-1,30 %)
were down.

Sluggish economic growth, sovereign debt worries in Europe and global fears for stagflation in the form of a
combination of weak growth and higher inflation, seemed to be back on the top of the agenda superseding the
more positive sentiments which have given markets a lift during the last days. US Unemployment numbers
which is one the best indicators of the health of the economy is expected to stay at 9,1 %.

Gold and old prices are steady while EURO continues to loose against the Dollar at 1.4243. Expect big
turbulence in late afternoon trading both in Gold and currencies if the unemployment figures come in
lower than expected.

05.09.2011
 

Recession fears scare
global financial markets

US unemployment figures sent new shivers through global financial markets on Friday renewing fears for a double dip recession. Unemployment stayed at 9,1 %, missing to add a single new job in August.

US stock markets plummeted. Dow lost 2,20 % while Nasdaq dipped 2,58 %. European markets were in free fall. Asia markets have fallen steeply during the night and Europe is expected to follow suit during to-day

07.09.2011
 

Positive Asia-session
following weaker YEN

All the major Asian indexes rallied this morning probably as a result of a weaker YEN trading at 77,25 against USD. Major companies as Toyota, Nissan and Hundai rose sharply on better export expectations. Gold fall back from 1910 peak yesterday and traded on 130

08.09.2011
 

New stimulus package
expected from Obama

A new stimulus package on USD 300 billions is expected when President Obama today is addressing a joint session of Congress. Tax cuts along with infrastructure investments and financial encouragements for companies hiring unemployed workers
are the ordained medicine for getting the US economy out of a looming recession.

The indicated initiatives have been well received in Asia. A stronger US economy is seen as necessary for a continued strong Asian export. Australia presented disappointing growth numbers this morning which led to a fall in the Aussie dollar. EURO/USD is trading at 1.4062 prior to the rent decision of European Central Bank (ECB) later today. Gold at 1828 is picking up from last day

09.09.2011
 

Obama package
USD 443 Billions

Obama proposed yesterday a 443 Billion support package to encourage growth. The stimulus is concentrated on infrastructure upgrading of schools, roads and bridges along with pay roll tax cuts favoring both employees and small businesses. Markets have reacted positively, but questions remain whether the President get the measures through Congress.

USD is falling slightly against other currencies: EURO/USD 1.3895. YEN/USD 77.48. Oil prices strengthen. Brent at 114,78. Gold decreases to 1860. New figures indicate Chinese inflation is dampening. US markets ended in red after FED chief Bernanke

12.09.2011
 

EURO under
hard pressure

The EURO continued its downward slide in Asia this morning trading at its lowest level for months against the USD: 1.3536
amidst Greek default speculation. Euro/USD has fallen from 1,41 levels since the midst of last week.

After Greece postponed it

13.09.2011
 

Weak EURO regains
some of its losses

The EURO regained some its early steep losses after dipping to 1.3550 in yesterday

14.09.2011
 

Greece unnerves
global markets

After a short spell of relief and as a reaction to the latest steep decline of the EURO, fear and nervousness again dominated global markets with Euro/USD trading at 1.3625. An emergency meeting is called between the prime ministers from Germany, France and Greece after Merkel assuring that Germany would not allow Greece to default.

It is expected that the two leading EU-countries, France and Germany, shall issue a strong warning to Greece to live up to its austerity and reform promises; simultaneously stressing willingness to take what it costs to bail Greece out and save the Euro. A strong political message seems absolutely necessary to calm global markets overreacting on unsubstantiated news and speculative rumors.

After a mixed session in the US, Asian markets again dropped on fear of a banking collapse in Europe following a Greek default. In a key speech the Premier plaid down Chinese willingness to come to the support of striving European economies. He stressed that China with its huge reserves are ready to invest in Europe, only preconditioned that Europe got their finances in order.

The major French banks rebounded strongly yesterday after an initial 10 % tumbling on fears that the French banks no longer had USD available. The panic sell stresses the contagion effects a possible Greek default shall have on banks and the banking system. US Finance Secretary,Timothy Geithner, is going to talk tough to its European counter-parties at a meeting at the end of the week. But is Geithner in a position to talk tough? He travels when a record high 62 % of US citizens have lost belief in President Obama