• Wall Street ends mixed amidst Christmas rally

• MYR to fluctuate in the range of 4.1775 and 4.1936 against US dollar

Global Highlights

The dollar index rose 0.11% to 96.202 as the risk sentiment remained in the market. On the data front, the average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the US increased 17.4% y/y in October 2021, slightly down from a 17.7% growth.

Equities were mixed as the Dow Jones rose 0.26% to 36,398 while the S&P 500 fell 0.10% to 4,786. The UST 10-year benchmark yield rebounded by 0.51bps to land at 1.481%. Gold fell 0.33% to US$1,806/oz.

The euro slid 0.16% to 1.131, staying close to its 17-month low. The British pound snapped its recent rally, losing 0.05% to 1.343.

The Japanese yen strengthened slightly by 0.04% to 114.82. Reports showed that Japan’s unemployment rate rose to 2.8% in November, compared with 2.7% in October (cons. 2.7%). Also, preliminary data revealed that industrial production in Japan climbed 5.4% y/y in November, the first positive growth for the first time in three months.

The Chinese yuan appreciated by a slight 0.04% to 6.369. On Monday, the PBoC stated that it will keep its monetary policy flexible in 2022 as it seeks to stabilise growth and lower financing costs for businesses amid growing economic headwinds.

Crude oil was traded higher again due to subsiding Omicron fears despite recent news that thousands of flights were cancelled over the holiday season, induced by surging Covid cases. Brent gained 0.43% to U$79 per barrel and WTI rose 0.54% to US$76 per barrel.

Malaysia Highlights:

The ringgit extended its winning streak as it firmed by 0.06% to 4.181, the strongest in over a month, and was traded with high of 4.1842 and low of 4.1807.

The FBM KLCI tracked global stocks' performances as it rose 0.39% to 1,540, driven by net buy inflows from foreign investors with RM110.4mil, offset by local institutions and retailers with RM56.4mil and RM54mil, respectively.

The IRS yield curve steepened slightly as the (3Y) -0.5bps to 2.745%, but the (5Y), (7Y) and (10Y) remained unchanged at 2.950%, 3.195%, and 3.380%. KLIBOR was also flat at 2.050%.

Against major currencies, the ringgit was mixed as it remained flat vs. the JPY and vs. CNY at 3.641 and 1.523, respectively. But it depreciated vs. EUR by 0.13% to 4.737, vs. GBP by 0.30% to 5.621, and vs. the AUD by 0.49% to 3.031. Against its regional peers, the ringgit was mixed as well as it weakened vs. the SGD by 0.23% to 3.088, vs. IDR by 0.05% to 3,400, and vs. the VND by 0.01% to 5,463, but strengthened vs. the THB by 0.05% to 8.012, and vs. the PHP by 0.40% to 12.060.

MYR Outlook For The Day

We expect the MYR to trade between our support level of 4.1725 and 4.1775 while our resistance is pinned at 4.1936 and 4.1986.

Source: AmInvest Research - 29 Dec 2021