The US

The Dollar remained at 104.21, as the US market was closed due to Memorial Day.  Global investors are closely monitoring the potential impact of a proposed deal to raise the United States debt ceiling on the financial markets. Lawmakers are working to pass the agreement before the 5 June deadline. The deal, announced by the White House and House Republicans, would prevent a default, and increase investors' appetite for risk.

US Equities & Sovereign Bonds

Dow Jones Remained at 33,093, S&P500 at 4,205, and Nasdaq Remained At  12,976.

The UST10Y benchmark yield was at 3.798% and the UST2Y was at 4.562%. The inverted differential remained at 76 bps.

Eurozone

The Euro was down 0.14% to 1.071. Spanish Prime Minister Pedro Sanchez has announced his intention to dissolve parliament and hold a snap election on 23 July.  This decision comes after his Socialist party experienced significant losses in regional and local elections.

The UK

The British Pound was up 0.09% to 1.236. The UK government said that it is  meeting with businesses from food sector to negotiate in reducing the inflation  burden on UK’s households. The government, however, will not impose any price  cap as the effort to bring down food prices is voluntary.

Japan

The Japanese Yen gained 0.11% to 140.45. China's Commerce Minister, Wang  Wentao, has called on Japan to rectify its imposition of chip export controls,  describing it as a "wrongdoing." The statement from China's commerce ministry,  released on Monday, highlighted Wang's remarks made during discussions with  Japan's Economy and Trade Minister at the Asia-Pacific Economic Cooperation  conference on 26 May.

China

The Yuan weakened by 0.09% to 7.071. China is reportedly considering the implementation of new tax incentives for high-end manufacturing firms as part of  its efforts to strengthen the economy and promote technological innovation to counter competition from the United States, according to Bloomberg’s report.

South Korea

The Won was up 0.20% to 1,322. Amid rising geopolitical tension, South Korea holds the country’s first summit with Pacific islands leaders to increase its influence  in the region. President Yoon Suk Yeol launched the Indo-Pacific strategy last year which will encourage a “free, peaceful and prosperous” region.

Australia

The Aussie gained 0.34% to 0.654. A group of crossbench Members of Parliament  (MPs) in Australia are urging the government to intervene and address the issue of student loan indexation to prevent around 3 million Australians from facing overwhelming debt. In a joint letter sent to Education Minister Jason Clare and  Anthony Albanese, eight MPs and senators emphasized the need for immediate action before the indexation rate of 7.1% takes effect on Thursday.

Crude Oil

Oil prices were mixed, Brent was up by 0.16% to USD77 per barrel and WTI  remained at USD73 per barrel as the US market was closed yesterday.

Gold

Gold Continued to Trade Lower, Down by 0.17% to USD1,943/oz.

Malaysia Highlights

The Ringgit weakened by 0.09% to 4.605. In April 2023, producer prices in  Malaysia experienced a decline of 3.0% y/y, marking the third consecutive month of contraction. The slowdown in producer prices was observed in the manufacturing sector, water supply, and electricity & gas supply. Additionally,  prices declined at a softer pace for mining and agriculture, forestry & fishing sectors. On a monthly basis, producer prices increased by 0.2%, slightly lower than the 0.3% increase recorded in the previous month.

Ringgit Outlook for the Week

The support level for USD/MYR is seen at 4.600 and 4.620 while resistance is  pinned at 4.640 and 4.650.

FBM KLCI

The FBM KLCI went up by 0.14% to 1,405. Detailed transactions showed that the local institutions and local retailers were net buyers with RM56.4 million and  RM22.7 million, respectively. Foreign investors were net sellers with RM79.1 million

Source: AmInvest Research - 30 May 2023