Malaysia

Manufacturing Sector's Sluggish Q3 To Continue: MIER. The Malaysian Institute of Economic Research’s (MIER) released Tuesday its business condition survey for the third quarter of 2013, which pointed to a contraction in the manufacturing sector. It said the sluggish outlook was expected to continue into the fourth quarter, on a quarterly basis. According to MIER, its Business Condition Index, which tracks domestic manufacturing activities, gained 2.6 points on-year but fell 15.6 points from Q2 of 2013. The decline was attributed to a drop in both the current and expected indices. (The Star)

Asia

China Major Cities Home Prices Jump, Fanning Bubble Concerns. Home prices in China’s four major cities jumped the most since January 2011, heightening concerns a bubble is forming as the government refrains from introducing more property curbs that would hinder economic growth. New home prices in September rose 20% in the southern business hubs of Shenzhen and Guangzhou, 17 % in Shanghai and 16 % in Beijing from a year earlier as prices climbed in 69 of the 70 cities the government tracks. (Bloomberg)

USA

U.S. Payrolls Rise Less Than Forecast Ahead of Shutdown. Employers in the U.S. added fewer workers to payrolls than projected in September, indicating the world’s largest economy had little momentum heading into the 16-day federal government shutdown. The 148,000 increase followed a revised 193,000 gain in August that was larger than initially estimated, Labor Department figures showed today in Washington. The unemployment rate fell to 7.2 %, the lowest level since November 2008. (Bloomberg)

Foreigners Sold U.S. Assets As China Reduces Treasuries. Foreign investors were net sellers of U.S. long-term portfolio assets in August as China reduced its holdings of Treasuries to a six-month low. The net long-term portfolio investment outflow was $8.9 billion after a revised $31 billion inflow in July, the Treasury Department said in a statement today in Washington. Net sales of U.S. equities by official holders abroad were a record $3.1 billion, and China lowered its holdings of U.S. government debt for the second time in three months, the department said. (Bloomberg)

US Construction Spending Approaches 4-1/2 Year High. U.S. construction spending hit a near 4-1/2 year high in August, boosted by increases in both private and public outlays, a hopeful sign for third-quarter economic growth. Construction spending increased 0.6 % to an annual rate of $915.1 billion, the highest level since April 2009, the Commerce Department said on Tuesday. Construction spending in July was revised to show a 1.4 % rise instead of the previously reported 0.6 % gain. (Reuters)

Europe

UK Borrowing Falls In September. Government borrowing fell in September, official figures show, helped by higher tax revenues. Public sector net borrowing, excluding the cost of interventions such as bank bailouts, was £11.1bn, the Office for National Statistics (ONS) said. The figure is lower than the £12.1bn recorded in September 2012. The UK's net public debt pile stands at £1.21 trillion, which is equivalent to 75.9% of GDP. The government is aiming for a deficit of no more than £120bn this year, excluding the effect of cash transfers from Royal Mail and the Bank of England. (BBC)

Currencies

Singapore Inks Direct Currency Trade, RQFII Quota With China. Singapore and China will introduce direct trading between their currencies, helping the city-state compete with Hong Kong and London as an offshore yuan hub. The two nations also agreed on a 50 billion yuan ($8.2 billion) quota for financial institutions in Singapore to invest in China’s domestic securities under the Renminbi Qualified Foreign Institutional Investor, the Monetary Authority of Singapore said in a statement today. The Southeast Asian nation will be given consideration as one of the investment destinations where Chinese institutional investors will be able to use yuan to buy securities, under the new Renminbi Qualified Domestic Institutional Investor program, according to the statement.(Bloomberg)

Euro Jumps To Late 2011 High After Jobs Report. The euro jumped on Tuesday to its highest level against the U.S. dollar since November 2011 after U.S. employment data signaled the Federal Reserve would extend its rate-depressing bond-buying program to 2014. The euro surged above the $1.37 level after the jobs data. The euro bought $1.3784 in recent trade, up from $1.3682 on Monday. The British pound surged to $1.6237 from $1.6148 on Monday. The Australian dollar jumped to 97.05 U.S. cents from 96.53 U.S. cents. The dollar bought 98.11 Japanese yen, little changed from ¥98.18 on Monday. The ICE dollar index, a measure of the greenback’s strength against a basket of rivals, fell to 79.233 from 79.674 on Monday. (Market Watch)

Commodities

U.S. Oil Sinks Below $98, Brent Gap Widest Since April. U.S. oil prices sank below $98 to their lowest in nearly four months on Tuesday, while European Brent held firm, as fears of a near-term U.S. crude surplus pushed the spread between the two oil contracts to its widest gap since April. U.S. crude futures for November, which expired on Tuesday, dropped $1.42 per barrel to settle at $97.80, with selling exacerbated as the front-month contract dropped below the 200-day moving average for the first time since June. The December contract ended the day $1.38 lower at $98.30. Brent for December settled 33 cents higher at $109.97 after trading at a session high of $110.94. The Brent/WTI spread widened by $1.38 to end at $11.67, the widest gap since April. (Reuters)

Gold Rallies To 3-Week High After U.S. Job Data. Gold rose over 2 % to three-week highs on Tuesday as weak U.S. jobs figures raised expectations the Federal Reserve will continue into next year its massive stimulus program that has bolstered bullion prices. Spot gold rebounded from early morning losses after the data, rising over 2 % to as high as $1,344.46 an ounce, its highest since Sept. 30, by late morning. In other precious metals, silver mirrored gold's moves and rose 2.4 % to $22.72 an ounce. Spot platinum was up 1 % at $1.447.49 an ounce and spot palladium rose 0.3 % to $749.22 an ounce. (Reuters)