• Market sentiment clouded by Russia-Ukraine conflict
• Oil Prices Trend Higher

Global Highlights

Dollar index – The dollar index gained 0.41% to 97.385, as the market continued to seek the greenback. On a macro front, the US unemployment rate declined to 3.8% in February 2022 from 4.0% in January 2022. In nominal terms, the number of unemployed persons went down by 243 thousand to 6.3 million. The latest numbers suggest that the labour market is tight, opening the room for the Fed to make the first monetary policy adjustment in the upcoming meeting despite the geopolitical situation in Europe.

US equities – US stocks closed lower, where the Dow Jones slid 0.53% to 33,615, S&P 500 lost 0.79% to 4,329, and the Nasdaq shed 1.7%to 13,313. Market sentiment was dominated by the Russia-Ukraine conflict, where the Russian armed forced attacked and took over one of Ukraine’s nuclear power plants.

Euro – The euro declined 1.25% to 1.093, extending its bearish trend amid geopolitical tensions that clouded the region’s economic outlook. On a macro front, retail sales in the Euro Area increased 7.8% in January 2022, an improvement relative to previous month’s number of 2.1%.

British pound – The pound weakened 0.88% to 1.323. In his latest speech, BoE deputy governor Jon Cunliffe said that the situation between Russia and Ukraine will add risks to the financial market, which is already volatile due to shift to higher interest rates.

Japanese yen – The yen weakened 0.55% to 114.820. There was a modest pick-up in appetite for riskier currencies, pressuring the safe-haven yen.

Chinese yuan – The yuan was 0.01% marginally lower at 6.320. The Chinese government set a GDP growth target of around 5.5% for this year, translating to the lowest target in decades.

Korean won – The won depreciated 0.78% to 1,214.

Australian dollar – The Aussie dollar gained 0.56% yo 0.737.

Commodities Highlights

Crude oil – Oil prices continued to trend higher with Brent rising 6.93% to US$118 per barrel while WTI surged 7.44% to US$115.68 per barrel .

Gold – Gold also continued to gain by 1.79% to US$1,970 per oz.

Malaysia Highlights

Malaysian ringgit – The ringgit slightly gained 0.15% to 4.188.

KLSE – The FBM KLCI closed 0.90% lower to 1,604.

Fixed Income – The yield for the 3-year was up by 2bps to 2.730%, 5-year added 1.0bps to 3.290%, the 7-year +4.0bps to 3.550%, and the 10-year down 1.5bps to 3.565%.

Rates – The IRS yields went lower; the (3Y) -1.5bps to 2.850%, (5Y) -2.0bps to 3.115%, (7Y) -0.5bps to 3.330%, and (10Y) unchanged at 3.550%. KLIBOR remained at 1.970%.

Against major currencies – The ringgit mostly rose against the EUR, GBP, CNY, SGD, THB, IDR, PHP and VND but weakened against the AUD and JPY.

Ringgit Outlook for the Day

We expect the MYR to trade between our support level of 4.1880 and 4.1910 while our resistance is pinned at 4.2050 and 4.2080.

Source: AmInvest Research - 7 Mar 2022