Talks Underway For China To Invest In EFSF October 28, 2011 8:55 AM CEST

G10 Advancers and Decliners vs USD CHF 0.20 JPY 0.06 NOK 0.05 SEK 0.05 DKK 0.00 EUR -0.04 GBP -0.06 CAD -0.17 NZD -0.24 AUD -0.32 Global Indexes Current Level % Change Nikkei 225 Index 9'050.47 + 1.39 Hang Seng Index 20'066.96 + 1.92 Shanghai Index 2'467.30 + 1.30 FTSE 100 Index 5'713.82 + 2.89 DAX Index 6'337.84 + 5.35 SMI Index 5'823.00 + 2.15 S&P future 1'278.60 - 0.31 World Markets Current Level % Change Gold 1'736.80 - 0.46 Silver 35.23 + 0.34 VIX 25.46 - 14.74 Crude wti 93.49 - 0.50 USD Index 74.94 - 0.12 Todays Calender Estimates Previous Country / GMT Manufacturing Confidence Oct -5 -3 SEK/07:15 Consumer Confidence Oct -6.4 -5.8 SEK/07:15 Economic Tendency Indicator Oct 96.0 96.9 SEK/07:15 Retail Sales, % m/m (y/y) Sep 0.3 (-0.2) -0.3 (0.2) SEK/07:30 Unemployment rate, % Oct 2.5 2.5 NOK/08:00 KoF leading indicator Oct 1.00 1.21 CHF/09:30 Core PCE price index, % m/m (y/y) Sep 0.1 (1.7) 0.1 (1.6) USD/12:30 U.Michigan final consumer sentiment, index Oct 58.0 57.5 USD/12:30

Currency Tech EURUSD R 2: 1.4470 R 1: 1.4290 CURRENT: 1.4175 S 1: 1.4160 S 2: 1.4000 GBPUSD R 2: 1.6205 R 1: 1.6140 CURRENT: 1.6090 S 1: 1.5955 S 2: 1.5890 USDJPY R 2: 76.50 R 1: 76.00 CURRENT: 75.85 S 1: 75.65 S 2: 75.00 AUDUSD R 2: 1.0785 R 1: 1.0765 CURRENT: 1.0670 S 1: 1.0655 S 2: 1.0315 Market Brief The risk rally that was sparked after the conclusion of this week’s EU summit has continued strongly into today’s session, with both equity markets and EURUSD posting strong gains. The Nikkei is up +1.4% on the day, Hang Seng +1.9% and Shanghai Composite +1.3% at the time of writing. Meanwhile EURUSD has remained well bid, taking us to highs of 1.4247 late in the US session as US stock markets were surging. The sense of optimism and heightened risk appetite has been encouraged not only by the relief that EU leaders are back on track to solve the Eurozone debt crisis, but also by the suggestion in an FT article today that China is “very likely” to offer financial assistance to Europe. China’s Vice Finance Minister Zhu confirmed that talks were underway with EFSF CEO Regling in Beijing, and if successful it would certainly add strong credibility to the EU summit plans. Further good news yesterday came in the form of US Q3 GDP which managed to hit an impressive 2.5% QoQ annualized rate after last quarter’s disappointing 1.3% print. Even though this is only an advance reading and subsequent revisions may yield some adjustments, the strong baseline revealed yesterday categorically dispels the fears that have swirling about the US returning to recession this quarter. In other news, the Riksbank kept interest rates on hold at 2.0% yesterday, in line with consensus expectations. Like many central banks that have had meetings in the past few weeks, the Riksbank downgraded its forecasts for growth and inflation over the coming year and now sees 2011 GDP at 4.2%, and 2012 CPI at 1.9%. Interestingly, there were two dissenters in the vote who wanted to cut the repo rate, and the statement had an overall dovish tone. Coming up today we have a glut of Swedish data released (including retail sales and consumer confidence), along with Norwegian unemployment, Swiss KOF leading indicator, and later the US PCE figures for September and U.Mich consumer confidence.

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