Malaysia

Bank Negara Gets More Regulatory And Supervisory Oversight Powers. In its first official comment on the wide-reaching Financial Services Act 2013 (FSA), Bank Negara has said that the new legislation is aimed at furthering financial stability, supporting inclusive growth in the financial system and the economy, and providing adequate protection for consumers. There was also a broad hint from Bank Negara that the FSA empowered it to look into periphery sectors of the financial markets, sometimes referred to as the “shadow banking” system. “The laws also provide Bank Negara with the necessary regulatory and supervisory oversight powers to fulfil its broad mandate within a more complex and  interconnected environment, given the regional and  international nature of financial developments,” the central bank said. (The Star)

Asia Pacific

Dollar Strength Forces Australia To Hold Rates.  The Reserve Bank of Australia kept official interest rates on hold at a record low on Tuesday but signalled a further weakening of the local currency was needed before the bank dropped its easing bias completely. For the second consecutive month the RBA kept its benchmark cash rate unchanged at 2.75 per cent, judging that “easier financial conditions” would contribute to a “strengthening of growth over time”.  However, RBA governor Glenn Stevens said the outlook for inflation gave the bank scope to cut rates if that was necessary to support growth as Australia’s resource investment boom peaks later this year. (Financial Times)

USA

U.S. Factory Orders Rose In May On Machinery, Computers. Orders placed with U.S. factories rose in May, reflecting broad-based gains that signal manufacturing is stabilizing. The 2.1 % gain in bookings followed a revised 1.3 % advance the prior month, the Commerce Department reported today in Washington. The median forecast of 61 economists in a Bloomberg survey called for a 2 % increase. Demand for capital equipment increased more than the government estimated last week. (Bloomberg)

Europe

Energy Costs Pull Down Euro Zone Producer Prices In May. Euro zone producer prices fell by slightly more than expected in May and for the third straight month, data showed on Tuesday, reflecting the bloc's stagnant economy and giving the European Central Bank scope to keep rates at a record low. Factory prices in the 17 countries using the euro fell 0.3 % in May, the EU's statistics office Eurostat said. That compared to the 0.2 % drop forecast by a Reuters poll of economists, although the May reading was narrower than the 0.6 % drop in April. (Reuters)

Greece Has 3 Days To Deliver Or Face Consequences: EU Officials. Greece has three days to reassure its lenders it can deliver on conditions attached to its international bailout in order to receive the next tranche of aid, four euro zone officials said on Tuesday. Athens and its creditors unlocking 8.1 billion euros ($10.6 billion) of rescue loans resumed talks on Monday on after a two-week break during which the government almost collapsed over redundancies at state broadcaster ERT. There is a general dissatisfaction with progress in Greece when it comes to reforming its public sector, such as tax and custom collection or health care services, a senior euro zone official  involved in negotiations said. (Reuters)

UK Business Confidence 'At Six-Year High'. Business confidence in the UK is at its highest level since 2007, the latest economic survey from a leading business group has suggested. The quarterly survey from the British Chambers of Commerce (BCC) is the latest indication that the UK's economic recovery is strengthening. There was further good news from a survey of the UK's construction sector. The Markit/CIPS purchasing managers' index indicated the sector grew for the second month in a row in June. (BBC)

Germans Let Cars Age As Consumers Halt Buying In Crisis. Cars on German roads are older than they’ve ever been as consumers balk at replacing aging models with new ones amid Europe’s sovereign-debt crisis. Registrations of new models in the country slumped 4.7 percent in June, the fifth decline this year, leading to an 8.1 percent drop for the first half of 2013 to 1.5 million vehicles, according to data released today from Germany’s motor vehicle office, KBA. The lack of buying meant cars are 8.7 years old on average, a new high and a full year older than the pre-crisis level in 2007, the VDA, Germany’s auto-industry association, said today. (Bloomberg)

Currencies

Rising Dollar Sails Back Above 100 Yen. The U.S. dollar saw strong gains versus major rivals Tuesday, pushing back above 100 Japanese yen for the first time since early June, as traders appeared increasingly confident the Federal Reserve will move to slow the flow of monetary stimulus and the Bank of Japan keeps its own spigots wide open. The  dollar fetched ¥100.66 in recent action, pushing back above ¥100 for the first time since June 5 and up from ¥99.64 in North American trade late Monday. The euro traded at $1.2974 in recent trade, down from $1.3064 late Monday. The British pound bought $1.5150, down from $1.5206. The ICE dollar index, which measures the U.S. unit against six other major currencies, rose to 83.561 from 82.998 late Monday, hitting its highest level since May. The Australian dollar traded at 91.43 U.S. cents, down from 92.31 U.S. cents late Monday. (Market Watch)

Commodities

Brent Nudges Up Above $103 On Mideast, Africa Supply Concerns. Brent crude edged higher to above $103 a barrel on Tuesday, extending gains to a second day due to concerns about supply disruptions in the Middle East and Africa. Brent crude futures for August delivery edged up 13 cents to $103.13 a barrel by 0530 GMT after rising 0.82 % the previous day. U.S. crude futures for August inched up 3 cents to $98.02 per barrel after settling up more than 1 % on Monday. Brent's premium to U.S. crude widened slightly to about $5 a barrel after hitting a low of $4.75 on Monday, the narrowest since January 2011, as severe flooding disrupted Canadian oil supply to the United States. (Reuters)

Gold Lower As Dollar Strengthens. Gold was lower on Tuesday as the dollar strengthened and investors looked for further indications that the Federal Reserve may soon end its U.S. stimulus program. Spot gold and was off 0.58 % at $1,245.16 by 1244 EDT (1644 GMT), after rising earlier to a near one-week high at $1,267.20 an ounce. Silver lost 0.97 % to $19.37 an ounce. Platinum was down 0.66 % at $1,365.49 an ounce and palladium dropped 32 % to $686.72 an ounce. (Reuters)