From: Sent: Fri 6/7/2013 9:49:47 AM Subject: Early Tour 6.7.13 Good Morning ... European Markets mixed... ASX -0.91%, NKY -0.21%, KOSPI -1.80%, TWSE -0.01%, SHCOMP -1.33%, HSI -1.21% EUR 1.3236 (-0.08%) JPY 96.11 (+0.86%) EUR/JPY 127.21 (-0.97%) AUD 0.9497 (-1.05%) NZD 0.7961 (-0.80%) Spain 10yr 4.64% Italy 10yr 4.29% Portugal 6.18% Germany 10yr 1.496% Japan 10yr 0.86°4 US 10yr 2.06% Futures: Dow -20, Nasdaq -3, S&P -2 DXY $81.49 (-5c) Crude $95.04 (+28c) Gold $1409.50 (- $6.30) Copper +0.17% Silver -0.58% Despite the better handoff from the US, Asian markets closed out the week lower in a volatile session. It was another wild ride in Japan after the big move in the JPY overnight. The Nikkei opened lower and was weak throughout the AM session, touching an infra-day low of 12,548 early in the afternoon (futures dipped below 12,300) before rallying over 4% on news that the gov't was going to announce a new allocation plan for pension funds after the close (reduce bonds, increase equity). The optimism was short- lived though as rumors circulated that any changes would not take effect until the 2H of this year and possibly into next year. After the close the news hit that the changes were to be effective immediately, but the equity allocation was only raised to 12% vs expectations of 14-15% (cutting domestic bonds to 60% from 67%), which prompted futures to trade back down toward 12,600. The MOTHERS index closed down 11.5% and is now down over 38% from the highs as retail continue to sell on margin calls. Outside of Japan, Korea was hit as Samsung traded down 6.2% after JPM cut profit estimates on a weaker outlook for the Galaxy S4 — the stock had its biggest one-day drop in more than 9-months. The SHCOMP was down for the Th day in a row as the market continues to focus on rapidly rising interbank rates and chatter of defaults in the interbank market. China will be closed through next Wednesday for holidays, along with Australia which is c