• Despite the lower than expected job creation in the US for the month of Aug’12 at 96,000 (versus expectations of over 100,000) and 41,000 downward revisions for June and July data, US stocks were marginally higher last Friday (Dow Jones up 0.11%, S&P 500 up 0.4% and Nasdaq 0.02%). This is likely due to anticipation of QE3 from Fed Chairman Ben Bernanke later this week after a similar version was launched by Mario Draghi last week in Europe.
• Nasdaq’s weak performance was dragged down by Intel which fell 3.6% after the world’s largest chip producer reduced its 3Q to Sept’12 sales forecast from US$13.8bln-14.8bln to only US$12.9bln-13.5bln (representing a 7.7% reduction) reflecting weaker than expected demand in the PC market from corporates and emerging markets. PC related stocks were whacked together with Intel.
• China’s industrial output for Aug’12 rose 8.9%, in line with expectations and showing a continued moderation from the July’s 9.2% and June’s 9.5% while inflation accelerated to 2% from July’s 1.8%. This should come as no surprise as the government has said that they are re-focusing their efforts to boost growth as they cut interest rates twice in June-July’12, reduced bank reserve requirements 3x since Nov’11 and last week launched a Rmb1 trillion stimulus plan to boost infrastructure spending.
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