Money Creation World Markets Update for February 03, 2010:
UK construction unexpectedly returned to growth last month as the
industry rebounded from the coldest December in a century, as the
purchasing managers index rose to 53.7 from 49.1 the previous month
(consensus: 49.5).


Violence continues in Egypt's capital as supporters of President Hosni
Mubarak challenge protesters demanding his immediate resignation, as
the regime appeared to be struggling to turn the tide in its favor.

Today, Japanese stocks dropped as corporate earnings missed analysts'
estimates & concern flaring violence among protesters in Egypt will
lead to more turmoil in the Middle East. Most Asian exchanges are
closed for the rest of the week for the Lunar New Year. Australian
shares climbed, driven by commodity suppliers, as crude oil prices
increased. Indian shares were choppy in early trade with little
direction from world markets and as an escalation of violence in Egypt
kept investors wary. Both Indian benchmarks were consolidating around
their previous closing values amid thin volumes.

At the European Union summit in Brussels on February 4, Euro leaders
are likely to to strengthen the EU's bailout mechanism in a bid to end
the debt crisis that forced Greece and Ireland to seek emergency aid.

Rating agency Standard & Poor's lowers its rating on Ireland to A-
from A yesterday, keeping the outlook negative due to uncertainty
surrounding the size of additional capital needs for its financial
sector.

New Zealand's unemployment rate rose more than forecast to 6.8% in Q4
from 6.4% in the previous quarter. Rising unemployment, along with
falling house prices, threaten to damp a projected rebound from the
economy's contraction in the third quarter.

US ADP employment report showed a gain of 187k in January private
payrolls, less than December's outsize 247k (revised down from 297k),
beating market expectations of 140k increase. The increase was once
again led by the services sector, which gained 166k, with construction
payrolls flat and financial activities employment falling 8k.