The US

The Dollar index gained 0.54% to 101.55. The weekly jobless claims and Philly Fed Manufacturing Index numbers and private sector will be the focus this week and are expected to impact market risk sentiment. Remarks by a few of the Federal Open Market Committee (FOMC) members are also expected to move the dollar.

US Equities & Sovereign Bonds

Wall Street closed lower where the Dow Jones was down by 0.42% to 33,886, S&P500 down by 0.21% to 4,138, and Nasdaq down by 0.35% to 12,123.

The UST10Y benchmark yield up by 7 bps to 3.513% and the UST2Y was also up by 13 bps to 4.099%, widening the inverted differential to 59 bps.

Eurozone

The Euro weakened 0.49% to 1.099. Various economic data releases including German and Eurozone ZEW Economic Sentiment figures, Euro trade data, inflation and consumer confidence figures will be released. Aside, another focus will be on speeches from European Central Bank (ECB) officials including President Lagarde and Chief Economist Philip Lane.

The UK

The British Pound also weakened by 0.88% to 1.241. Several key data to be published this week, including unemployment figures, inflation rate, retail sales and private sector PMIs. Moreover, a number of Bank of England officials Sir Jon Cunliffe, Catherine Mann, and Silvana Tenreyro will also deliver speeches.

Japan

The Japanese Yen weakened by 0.91% to 133.79. The focus this week will be on the industrial production figures, followed by trade data on Thursday and inflation numbers on Friday.

China

The Yuan weakened by 0.02% to 6.869. Among key data to be published this week, are 1Q2023 GDP numbers, industrial production, fixed asset investments, and retail sales figures which are due on Tuesday. Additionally, the People’s Bank of China will set the three-year and five-year loan prime rates on Thursday.

South Korea

The Won gained 0.88% to 1,299. South Korea's finance minister stated that the country is not considering a supplementary budget, despite a decline in tax income this year. The tax income declined by KRW15.7 trillion (USD12 billion) as of February from a year ago, and this year's tax income is feared to fall short of the government's estimate.

Australia

The Aussie dollar weakened 1.11% to 0.671. This week is relatively quiet for the Australian economy. The Reserve Bank of Australia’s (RBA) meeting minutes on Tuesday will be published, where market will get more clarity on the decision to stand pat on interest rates.

Crude Oil

Oil prices closed higher, where Brent up by 0.26% to US$86 per barrel and WTI up by 0.44% US$83 per barrel.

Gold

Gold Was Down by 1.77% to US$2,004/oz.

Malaysia Highlights

The Ringgit was almost flat to settle at 4.401. Focus this week will be on Malaysia’s trade numbers that will be published on Wednesday. On Thursday, the inflation numbers will be out, where consensus is expecting headline inflation to be at 3.6% y/y for March 2023 (February 2022 actual: 3.7% y/y).

On credit ratings, Moody’s affirmed Malaysia’s rating at A3 with a “stable outlook.” In the statement, Moody’s highlighted Malaysia’s economic performance and resilience have the potential to be bolstered with an influx of foreign investment in high-value industries as companies reconfigure their regional supply chains, supporting stronger levels of growth.

Ringgit Outlook for the Week

The support level for USD/MYR is seen at 4.380 and 4.390 while resistance is pinned at 4.420 and 4.430.

FBM KLCI

The FBM KLCI was up 0.06% to 1,435. Detailed transactions showed that the local institutions were the net sellers with RM22.3 million. Local retailers and foreign investors were net buyers of RM5.6 million and RM16.7 million, respectively.

Source: AmInvest Research - 17 Apr 2023