• Russia-Ukraine conflict dominates headlines; news of lockdown in China gains attention.

Global Highlights

Dollar index – The Dollar Index gained 0.63% to 99.124, as the market continued to seek the greenback. The focus now is more on the US monetary policy, where the Fed is expected to make the first fed funds rate hike in its meeting. Markets will also seek clarity on how high the Fed’s hike will be given the geopolitical situation that is pushing commodity prices higher.

US equities – US stocks were mixed, where the Dow Jones unchanged at 32,945, S&P 500 lost 1.30% to 4,204, and the Nasdaq shed 2.0% to 12,581. Market sentiment was dominated by the Russia-Ukraine situation, plus the sudden surge of cases in Shenzhen, China, which forced authorities to impose a lockdown throughout the city.

Euro – The euro declined 0.67% to 1.091, extending its bearish trend amid geopolitical tensions that clouded the region’s economic outlook.

British pound – The pound weakened 0.27% to 1.300. On the macro front, the number of British manufacturers raising prices has hit its highest since at least year 2000, according to a Make UK survey .

Japanese yen – The yen weakened 0.99% to 117.290.

Chinese yuan – The yuan gained 0.41% to 6.366. On the macro front, foreign direct investment into China surged 37.9% y/y to CNY243.7 billion in the first two months of 2022. Foreign investment into the services sector increased 24% while high-tech industries jumped to 73.8%.

Korean won – The won gained 0.29% to 1,232.

Australian dollar – The Aussie dollar slid 0.88% to 0.729.

Commodities Highlights

Crude oil – Oil prices are trading lower relative to past week’s trend. Brent price declined 5.12% to US$107 per barrel and WTI also declined 5.78% to US$103 per barrel .

Gold – Gold also declined by 1.89% to US$1,951 per oz.

Malaysia Highlights

Malaysian ringgit – The ringgit weakened 0.25% to 4.206.

KLSE – The FBM KLCI closed 0.05% lower at 1,567.

Rates – The IRS yields went higher; the (3Y) +1.5bps to 2.935%, (5Y) +2.0bps to 3.175%, (7Y) +2.0bps to 3.375%, and (10Y) +2.0bps to 3.590%. KLIBOR remained at 1.970%.

Against major currencies – The ringgit gained against the EUR, AUD, JPY, CNY, THB and the PHP. It was unchanged against the SGD, and weakened against the GBP, IDR and VND.

Ringgit Outlook for the Day

We expect the MYR to trade between our support level of 4.1800 and 4.1830 while our resistance is pinned at 4.2070 and 4.2100.

Source: AmInvest Research - 15 Mar 2022