Global

Global Semicon Sales At Highest Ever Of US$305.6bil. Worldwide semiconductor sales for 2013 totalled US$305.6bil, the highest ever annual total and up 4.8% from US$291.6b in 2012, says the US-based Semiconductor Industry Association. It said late Monday global sales for December 2013 reached US$26.6bil, marking the strongest December on record. The SIA said December sales in the Americas increased 17.3% on-year. (The Star)

Asia Pacific

RBA Moves To Neutral As It Signals Comfort With Aussie Level. Australia’s central bank signaled the end of a twoyear easing cycle and foreshadowed stronger economic growth, sending the nation’s currency higher. Governor Glenn Stevens kept the overnight cash-rate target at 2.5 %, saying in a statement in Sydney “the most prudent course is likely to be a period of stability in interest rates.” He said the Australian dollar’s decline “will assist in achieving balanced growth,” dropping references in past statements that it was “uncomfortably high.” (Bloomberg)

New Zealand Fourth-Quarter Jobs Growth Builds Case For Rate Rise. New Zealand employers hired workers at almost double the pace economists forecast in the three months through December, adding to the case for an interest-rate increase as early as next month. Employment increased 1.1 %, or by 24,000 jobs, from the third quarter, Statistics New Zealand said in a report today in Wellington. The median forecast in a Bloomberg News survey of 12 economists was for a 0.6 % gain. The jobless rate fell to 6 % from 6.2 %, matching the median forecast and reaching the lowest since mid-2009. (Bloomberg)

USA

Factory Orders Dip, But Core Orders Help Tame Economy Fears. New orders for U.S. factory goods fell in December, but rose for a third straight month when the volatile transportation sector was excluded, which could ease concerns of an abrupt slowdown in manufacturing activity. The Commerce Department said on Tuesday new orders for manufactured goods dropped 1.5 %, the largest fall since July, weighed down by a plunge in bookings for transportation equipment. November's orders were revised to show a 1.5 % increase instead of the previously reported 1.8 % gain. Economists polled by Reuters had forecast new orders received by factories falling 1.7 % in December. Orders excluding transportation gained 0.2 % after rising 0.3 % in November. (Reuters)

Deficit To Fall To $514 Billion, U.S. Budget Agency Says. The U.S. budget deficit will fall to a seven-year low as a share of the economy, driven downward by stronger economic growth that has boosted tax revenue and helped contain spending, according to the Congressional Budget Office. The fiscal 2014 deficit will narrow to $514 billion, or 3 % of gross domestic product, from $680 billion last year, the CBO said today in Washington. The projected gap is down from 9.8 % of GDP in 2009, the widest in records dating back to 1974, and is close to the average of the past four decades, the agency said. The budget was in surplus from 1998 to 2001. (Bloomberg)

Europe

UK Construction Sector 'Sees Rapid Growth'. The UK's construction sector grew last month at its fastest pace for almost six and half years, a survey indicates. The Markit/CIPS purchasing managers' index (PMI) for the sector rose to 64.6 in January. This was up from 62.1 in December and well above the 50 level that marks expansion. It was also the strongest reading since August 2007 and one of the highest figures since the survey began in 1997. Martkit said the growth was led by an increase in house building. (BBC)

Currencies

Dollar Rebounds Vs. Yen; Aussie Hits 3-Week High. The U.S. dollar rebounded against the yen on Tuesday, while the Australian dollar jumped after Australia’s central bank indicated it’s no longer leaning toward cutting interest rates. The dollar rose to ¥101.67 from ¥100.92 late Monday. The Australian dollar rose to 89.39 U.S. cents, its highest level since Jan. 14, from 87.51 U.S. cents late Monday. The British pound rose to $1.6326 from $1.6304 late Monday. Meanwhile, the euro declined to $1.3517 from $1.3529. The ICE dollar index, a gauge of the greenback’s strength, rose to 81.120 from 81.032 late Monday. (Market Watch)

Commodities

Brent Falls On Emerging Markets, U.S. Oil Rises On Cold. Brent oil settled at a three-month low on Tuesday, pressured by the downturn in emerging markets, while U.S. crude ended higher, boosted by continued demand for heating fuels and the expectation of a large draw from storage at the benchmark's delivery point. U.S. crude oil futures ended 76 cents higher at $97.19 a barrel, bouncing after their largest daily percentage loss in nearly a month on Monday as they tumbled with U.S. equities. Brent oil settled 26 cents lower at $105.78, the lowest settlement price since Nov. 8. (Reuters)

Gold Falls As U.S. Equities Rally, Dollar Gain Weighs. Gold dropped on Tuesday after posting a one-% rally in the previous session, as steadier U.S. equities and a stronger dollar prompted investors to unwind some of their safety bets in bullion. Spot gold fell 0.3 % to $1,253 an ounce by 2:47 p.m. EST (1947 GMT). Among other precious metals, silver rose 0.4 % to $19.40 an ounce. Palladium dropped 0.5 % to $695.70 an ounce, having earlier fallen to its lowest since Dec.26 at $692.50. Platinum fell 0.7 % to $1,368.99 an ounce. (Reuters)