USD interest rates
- Currently low due to Fed monetary easing to rescue market
- Expect to climb up again in the long term due to inflation
- Inflation is a result of current liquidity pumping
EUR interest rates
- ECB expect to lower rates soon given weak economic fundamentals
- EUR zone sees unemployment climbing and retailing dropping
EUR/USD
- Currently low due to weak dollar
- Expect to depreciate due to ECB lowering interest rate
Commodity
- Market flat, prices find support as producers pulling back on cost
- Upward trend unlikely due to weak demand
China Domestic
- One more round of interest rate cutting expected within year
- Loosening government policy but bank lending stringent
- USD/CNY shows sign of depreciation, keep eye on fixing's trend
PSLE and PRC law might not be compatible with each other. Once customer defaults, will bank be able to claim its MTM gain?
SOEs, listed companies and private ones alike more cautious towards structured products through recent fallout of a few deals. One case is CITIC Pacific, a HK listed company.
What have we learned from the recent financial turmoil?
