• US equity market closes higher; sentiment still weighs on Ukraine situation.

Global Highlights

Dollar Index – The Dollar Index rose 0.26% to 98.233. The focus will now be on Fed officials, including the Fed chair’s tone on the pace and magnitude of rate hikes and plans involving winding down the balance sheet.

US equities – US stocks closed higher, where the Dow Jones gained 0.80% to 34,755, S&P 500 up 1.17% to 4,463, and the Nasdaq climbed 2.05% to 13,894. The equity market rebounded and continued to be on a strong footing, albeit still depending on the sentiment over the situation in Ukraine.

Euro – The euro weakened 0.36% to 1.105. The flash market PMIs are expected to be published for the Eurozone, Germany and France this week, where slowdown on both the manufacturing and services sectors is expected amid the situation un Ukraine.

British pound – The pound gained 0.22% to 1.318. The Spring Budget Statement is to be tabled this week, where measures to address cost of living due to a higher energy and food prices are expected to be announced.

Japanese yen – The yen slid 0.48% to 119.170. According to a recent poll, a majority of Japanase were worried that China could take a military action against Taiwan, after witnessing the Russian aggression on Ukraine.

Chinese yuan – The yuan slid 0.22% to 6.361.

Korean won – The won added 0.56% to 1,207.560. South Korea will ease Covid-19 restrictions today, abandoning certain social distancing protocols, increasing gathering limits, pushing back curfews, and stopping mandated enforcement of vaccine passes. This will further boost economic recovery for South Korea on top of strong GDP growth in the fourth quarter last year and improving labour market.

Australian dollar – The Aussie dollar gained 0.53% to 0.742. In response to the current situation in Ukraine, the Australian government has imposed ban on exports of alumina and bauxite to Russia, where currently Russia is relying nearly 20% of alumina needs from Australia.

Commodities Highlights

Crude oil – Oil prices closed higher where Brent increased 1.21% to US$108 per barrel and WTI climbed 1.67% to US$105 per barrel .

Gold – Gold declined 1.09% to US$1,922 per oz.

Malaysia Highlights

Malaysian ringgit – The ringgit weakened 0.02% to 4.195.

KLSE – The FBM KLCI closed 0.02% higher at 1,591. On the macro front, the government announced that the minimum wage will be increased to RM1,500 per month from the previous minimum wage of RM1,200 per month. The implementation will take place on 1 May 2022.

Fixed Income – The yield for the 3-year was up by 1.0bps to 2.690%, 5-year down 1.0bps to 3.300%, the 7-year remained at 3.565%, and the 10-year 2.0bps lower to 3.690%.

Rates – The IRS yields were mixed; the (3Y) +1.5bps to 2.910%, (5Y) +2.0bps to 3.160%, (7Y) +0.4bps to 3.353%, and (10Y) +4.0 to 3.600%. KLIBOR remained at 1.970%.

Against major currencies – The ringgit gained against the GBP, JPY, CNY, THB, IDR, and PHP, and weakend against the EUR, AUD, SGD, 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 - 21 Mar 2022