The US

The Dollar Index Remained at 103.86 Since the US Market Was Closed to Celebrate Presidents Day.

US Equities & Sovereign Bonds

Dow Jones Remained at 33,827, S&P500 at 4,079, and Nasdaq at 11,787.

The UST10Y benchmark yield remained at 3.815% and the UST2Y at 4.617%, and the inverted differential remained at 80 bps.

Eurozone

The Euro weakened 0.08% to 1.069. The European stocks closed lower on Monday as investors considered the possibility that major central banks including the Federal Reserve would keep interest rates higher for longer to combat inflation. Investors have been revising their interest rate projections in the US after several better-than-expected economic data reports in recent weeks.

The UK

The UK Sterling gained 0.03% to 1.204. A survey conducted by Savanta showed that 61% of people in the UK believe Brexit has damaged the economy, while only 13% believe it has improved the economic situation. The poll also concluded that most Britons think Brexit has contributed to the country's food supply crisis, which has resulted in a shortage of goods in supermarkets and worsening the cost-ofliving crisis.

Japan

The Yen weakened 0.07% to 134.25. Japan’s equity also closed lower on Monday as investors were cautious ahead of a week of important data including the US GDP, as well as the incoming Bank of Japan (BOJ) leadership team's testimony.

China

The Yuan gained 0.20% to 6.855. New research by Cross Dependency Initiative (XDI) suggests that some of China's regions, including Jiangsu and Shandong provinces are vulnerable to climate risks by 2050. Nine of China's provinces, which account for over half of the overall China’ GDP, occupy the top nine spots on the list of the world's regions most susceptible to natural disasters related to climate change.

South Korea

The Won sharply appreciated by 0.43% to 1,294. South Korea plans to launch its sixth generation (6G) network service in 2028, two years earlier than originally scheduled, to secure early dominance of future wireless frequencies. This acceleration will involve securing world-class 6G technologies, innovating software-based next-generation mobile networks, and strengthening the network supply chain.

Australia

The Aussie Dollar gained 0.42 to 0.691. The stock market in Australia also gained on Monday by 0.1% to 7,352, driven by the financial, consumers and industrial sectors.

Crude Oil

Oil prices were mixed on Monday. Brent gained 1.29% to US$84 per barrel while WTI remained at US$76 per barrel.

Gold

Gold price down 0.05% to US$1,841/oz, due to anticipation of a more rate hikes from the Federal Reserve.

Malaysia Highlights

The ringgit gained 0.06% to 4.430 but is still trading at the weakest point this year due to expectation that the Federal Reserve will tighten its monetary policy faster than expected.

On a macro front, trading activities off to a slow start. Malaysia’s external trade grew 1.9% y/y in January 2023 to RM207.5 billion. Exports rose 1.6% y/y to RM112.8 billion (December 2022: 5.9%) and imports grew by 2.3% to RM94.7 billion (December 2022: 11.5%).

Ringgit Outlook for the Day

We expect the MYR to trade between our support level of 4.410 and 4.420 while our resistance is pinned at 4.450 and 4.460.

FBM KLCI

The FBM KLCI fell 0.23% to 1,473. Detailed transactions showed that the local institutions were the net seller with RM77.3 million. Local retailers and foreign investors were net buyer with RM15.7 million and RM61.6 million, respectively.

Source: AmInvest Research - 21 Feb 2023