• Brent soars to three-year high post-OPEC+ meeting

• MYR to fluctuate in the range of 4.1635 and 4. 1766 against US dollar

Global Highlights

The dollar index fell 0.28% to 93.776, retreating from its one-year high. The dollar found little support among local data as vehicles sales in the US fell to 9.6mil in Sep, down from 13.1mil in August. Other than that, new orders for US manufactured goods rose by 1.2% MoM in August, beating the market forecast of 1%.

Equities ended deep in the red when the Dow Jones fell by 0.94% to 34,003 and S&P 500 tumbled 1.30% to 4,300. The UST 10- year benchmark yield rose +1.73bps to 1.479%. Gold extended its winning streak as it gained 0.49% to US$1,770/oz.

The euro rallied 0.22% to 1.162, trying to recoup last week’s losses amid tepid economic data releases.

Similarly, the British pound climbed 0.47% to close at 1.361.

The Japanese yen strengthened by 0.11% to 110.93 as caution grew locally following the appointment of Fumio Kishida as the 100th prime minister.

In the meantime, the Chinese renminbi remain unchanged at 6.445. The Chinese market is closed for a five-day holiday.

Crude oil soared to its three-year peak with the Brent jumping by 2.50% to more than US$80 per barrel at US$81.3 while the WTI shot up 2.29% to US$77.6 per barrel. This was after OPEC+ confirmed it would stick to its current policy of gradually increasing the oil output despite demand from some countries for a higher production.

Malaysia Highlights:

The ringgit strengthened for the second consecutive session by 0.11% to close at 4.175. It was traded with high of 4.178 and low of 4.169. Meanwhile, the number of new daily cases in Malaysia dropped to around 8,000, which is the second time the number has fallen to below the 10K mark.

The FBM KLCI closed lower as it lost 0.13% to 1,522. Local institutions were net buyers at RM103mil, while both local retailers and foreign investors were net sellers with RM19.1mil and RM83.9mil, respectively.

On the local bond market, it was a quiet trading day with yields little changed. 3-year yield was sent lower by 2.0bps to 2.450% while the 7-year closed lower 1.0bps to 3.310%. The 5-year and 10-year yields were unchanged.

The IRS curve shifted higher: (3Y) +0.7bps to 2.437%, (5Y) +2.0bps to 2.775%, (7Y) +1.5bps to 2.945% while the (10Y) was stable at 3.195%. Against most major currencies, the ringgit weakened across the board as it slipped; vs. the EUR by 0.15% to 4.846, vs. the GBP by 0.50% to 5.660, vs. the AUD by 0.36% to 3.034, vs. the JPY by 0.03% to 3.763. It strengthened against the CNY by 0.11% to 1.543.

Against its Asean peers, it was traded stronger; vs. the SGD by 0.11% to 3.074, vs. the THB by 0.54% to 8.087, and vs. the VND by 0.08% to 5,450. Nonetheless, the ringgit slid against the IDR by 0.18% to 3,418, and against the PHP by 0.07% to 12.145.

MYR Outlook For The Day

We expect the MYR to trade between our support level of 4.1584 and 4.1635 while our resistance is pinned at 4.1766 and 4.1845.

Source: AmInvest Research - 5 Oct 2021