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DAILY MARKET UPDATE TUESDAY, APRIL 06, 2010

EQUITIES _______________________________________________________________________________

Switzerland Europe

Novartis AG (NOVN VX) Daimler AG (DAI GY)

• Merck & Co. sued to prevent the Swiss
drugmaker’s Sandoz unit from selling a generic
copy of the Cancidas antifungal treatment until
a patent expires in 2017.
Swisscom AG (SCMN VX)
• The Swiss telephone company doesn’t expect to
lose sales in Italy because of a probe of its
FastWeb SpA unit, CEO Carsten Schloter said in
an interview with SonntagsZeitung. The unit on
April 2 set aside € 70mln to protect against a
probe of alleged tax fraud and money
laundering.
• Daimler, Renault SA and Nissan Motor Co. expect
to save “billions of euros” by sharing
development costs as part of an equity-swap
alliance. The automakers aim to sign an
agreement that will include cross-shareholdings
as early as April 7.
Hannover Rueckversicherung AG (HNR1 GY)
• Reinsurer Hannover Re plans to reduce its major
claims business, according to FAZ. The re-insurer is
cutting back on its exposure to large disasters to
stabilize earnings.

Syngenta (SYNN VX) FastWeb SpA (FWB IM)

• Syngenta announced today that it has entered
into a public-private partnership with the
International Maize and Wheat Improvement
Center (CIMMYT) to focus on the development
and advancement of technology in wheat.
• The company said CEO Stefano Parisi temporarily
suspended himself from his role, while his position
is cleared in a Rome probe, according to a
statement distributed by the Italian Exchange.

USA

Future Current Chg Pct 1d Trend

DJIA . Jun ’10 10892 -0.16%

S&P 500 Jun ’10 1179.9 -0.25%

Nasdaq 100 Jun ‘10 1969.75 -0.19%

U.S. Market News

Brigham Exploration Co.,the energy company said it plans to issue 13 million shares of stock in a public offering
and plans to use the proceeds to fund work on its Williston Basin project. Dress Barn Inc.: Standard & Poor’s said
that the women’s clothing retailer would replace Terra Industries Inc. in the S&P Midcap 400 Index. Terra is being
purchased by CF Industries Holdings. Rogers Corp., the maker of components used by telephone, technology
and defence companies raised its forecast for Q1 sales to $83 million from a range of $75 million to $80 million.
Analysts had expected $78 million. Schlumberger Ltd. said the U.S. Justice Department’s Antitrust Division made a
second request for information on the company’s $11.2 billion takeover of Smith International Inc. The proposed
transaction is still scheduled to close in this year’s second half. Teekay Tankers Ltd. declined 6.4 percent to $12.20.
The owner of crude-oil tankers said it will offer 7 million shares of common stock, and plans to use the proceeds to
help finance a $168.7 million acquisition of three oil tankers from its affiliate, Teekay Corp.
COMMODITIES ___________________________________________________________________________
Oil
Crude oil traded near the highest in 17 months in New York as growth in U.S. service industries signaled the
economy is recovering from the worst recession since the 1930s. Oil climbed 2.1% yesterday amid optimism fuel
demand will increase with an economic rebound in the U.S., the world’s largest energy consumer. The country’s
fuel supplies probably declined last week, a Bloomberg News survey showed before an Energy Department
report tomorrow. Crude oil for May delivery was at $86.40 a barrel, down 22 cents, in electronic trading on the
New York Mercantile Exchange at 1:08 p.m. Singapore time. Yesterday, the contract rose $1.75 to $86.62, the
highest settlement since Oct. 8, 2008. Futures have gained 9% this year.

Gold
Gold declined as the dollar strengthened and on speculation that the metal’s rise to the highest level in almost
a month is prompting some investors to lock in gains. Gold for immediate delivery fell 0.2% to $1,129.60 an ounce
at 8:35 a.m. in Singapore. The precious metal touched $1,133.40 an ounce yesterday, the highest price since
March 8. The dollar gained 0.2% against a basket of major currencies on concern Greece will struggle to raise
further funds, damping demand for European assets. Gold gained 24% last year, while the dollar dropped 4.2%.
Spot gold has recently bounced and is heading back up to its $1,135.50/1,145.25 resistance area,
Commerzbank AG technical analyst Karen Jones said, citing the 50% Fibonacci retracement of the past three
months’ slide and March high.

Soft Commodities
Soybeans and corn declined in Chicago as the dollar strengthened, reducing the appeal of U.S. crops amid
rising competition from South American exports. Soybeans for May delivery lost as much as 0.3% to $9.33 a
bushel on the Chicago Board of Trade before trading at $9.3425 a bushel at 10:27 a.m. Singapore time. May-
delivery corn fell as much as 0.4% to $3.445 a bushel. The dollar gained 0.3% against a basket of six currencies at
10:23 a.m. Singapore time. The volume of soybeans slated for export inspected at U.S. ports fell 47% to 16.245
million bushels in the week ended April 1 from a week earlier, the nation’s Department of Agriculture said
yesterday. The combined soybean harvests in Brazil and Argentina, the world’s biggest exporters of the oilseed
after the U.S., were forecast to jump 35% to 120 million metric tons this year, from a year earlier, the USDA said
March 10. The volume of corn slated for export inspected at U.S. ports was little changed at 39.376 million
bushels in the week to April 1 from 39.561 million bushels, the USDA said yesterday.

FX ____________________________________________________________________________________
The euro fell for a second day against the yen amid concern Greece and other European countries will struggle
to raise funds to repay maturing debt. The euro weakened versus 13 of 16 major counterparts after the Financial
Times reported Greece plans to sell bonds in the U.S. as the European nation tackles the trading bloc’s widest
fiscal gap, citing an unidentified official. The yen strengthened on speculation Japanese exporters bought the
currency after it fell to a seven-month low against the dollar. The euro declined 0.8% to 126.21 yen as of 1:07
p.m. in Tokyo from 127.25 in New York yesterday. Europe’s currency dropped 0.4% to $1.3425. The yen gained to
94 from 94.37 yesterday, when it touched 94.79, the lowest since Aug. 24. The euro has weakened 5.3 percent
against the yen and 6.3% versus the greenback this year amid concern Greece’s fiscal shortfall will widen and
discord among European leaders over an aid package for the nation.

FIXED INCOME ___________________________________________________________________________

Treasuries advanced, halting three days of losses, as yields that climbed above 4% yesterday lured buyers
gauging inflation rates will remain low, enhancing the value of debt’s fixed payments. Treasury Inflation
Protected Securities, or TIPS, show investors have lowered inflation expectations since January. Subdued
consumer price gains provide one reason Federal Reserve policy makers are keeping the benchmark interest
rate near zero for an “extended time,” according to researchers at Fed banks in San Francisco and New York.
Demand for Treasuries also increased as Market News International reported that Greece’s government wants
to amend a European accord for financial aid. The yield on the benchmark 10-year note fell two basis points, or
0.02%, to 3.97% as of 1:16 p.m. in Tokyo, according to BGCantor Market Data. The yield touched 4.0095%
yesterday, the highest level since Oct. 16, 2008. The 3.625% security due in February 2020 rose 1/8, or $1.25 per
$1,000 face amount, to 97 7/32. Ten-year Treasury yields may fall to 3.5% by the end of June, Baring Asset’s
Tamaru said. Should his predictions prove accurate, investors who buy the debt today would make a 4.7%
return, Bloomberg calculations using horizon analysis show.
GLOBAL FIGURES ___________________________________________________________________________________________
Equities Commodities
Index Current Change % Change % YTD Index Current Net Change 1d Change % YTD
MSCI World 1'217 0.38% 4.18% GSCI ER 450.40 7.29 2.15%
SPX 1'187 0.79% 6.49% GSCI Agriculture ER 49.29 -0.09 -17.63%
INDU 10'974 0.43% 5.23% GSCI Livestock ER 216.01 2.63 8.46%
NDX 1'978 0.93% 6.32% GSCI Precious Metal ER 167.00 1.24 3.63%
SX5E 2'979 1.62% 0.46% GSCI Industrial Metal ER 265.84 0.00 5.73%
DAX 6'236 1.33% 4.67% GSCI Energy ER 289.11 6.25 5.34%
SMI 6'889 0.23% 5.24% AIG ER 135.44 1.58 -2.69%
UKX 5'745 1.15% 6.13% WTI 86.39 -0.23 6.51%
CAC 4'034 1.52% 2.49% Brent 85.88 1.87 7.30%
NKY 11'244 -0.84% 6.61% Natural Gas 4.28 0.01 -22.74%
HSI 21'537 1.40% -1.53% Gold 1'128.80 -5.00 2.73%
IBOV 71'290 0.22% 3.94% Silver 17.98 -0.14 6.61%
KOSPI 1'722 -0.15% 2.36% Aluminium n/a 29.15 5.72%
SENSEX BSE 30 17'918 -0.10% 2.59% Copper n/a 51.00 0.00%
RTSI 1'628 0.08% 12.70% Zinc n/a 27.25 -7.31%
Tin n/a -6.00 8.39%
Volatility Nickel n/a 50.00 34.94%
Current Net Change WTD Net Change 1m Lead n/a 62.50 -10.24%
VIX 17.02 -0.45 -0.40 Corn 344.75 -1.00 -18.74%
VSTOXX 20.00 n/a -3.09 Wheat 466.50 -0.75 -17.58%
VDAX 17.85 n/a -2.47 Soybean 933.00 -3.00 -11.46%
VSMI 13.87 n/a -1.43 Sugar 16.40 -0.30 -35.00%
Cocoa 2'986.00 -37.00 -9.71%
Currencies Coffee 139.65 0.00 1.49%
Current Change % 1d Change % YTD Cotton 82.59 0.31 7.83%
USD/CHF 1.0667 -0.42% 2.95% Live Cattle 94.30 0.10 7.50%
USD/JPY 94.0300 0.36% 1.07% Feed Cattle 114.10 -0.03 15.54%
CHF/JPY 88.1600 0.78% -1.93% Lean Hogs 85.20 0.15 10.26%
EUR/USD 1.3426 0.43% -6.67%
EUR/CHF 1.4322 0.01% -3.59% Credit
GBP/CHF 1.6243 0.02% -3.05% iTraxx Europe IG 5yr 63.25
USD/BRL 1.7618 0.16% 0.98% iTraxx Europe Crossover 5yr 389.31

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 0.62 1.10 0.48 1.05 0.45
3M 0.29 0.58 0.25 0.65 0.24 2Y 1.31 1.45 0.85 1.56 0.47
6M 0.44 0.88 0.33 0.88 0.45 5Y 2.91 2.41 1.61 2.85 0.75
12M 0.92 1.19 0.64 1.32 0.68 10Y 3.99 3.31 2.35 3.79 1.44

ECONOMIC INDICATORS OF THE WEEK

US: Date Event Survey Actual Prior

07.04.2010 Consumer Credit (February) $ -0.2bn $ 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 - -7.5
07.04.2010 Euro-Zone PPI (YoY) -0.4% - -1.0%
08.04.2010 Euro-Zone Retail Sales (YoY) -0.4% - -1.3%

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