The following table shows rates for Asian currencies against the dollar at 0145 GMT. CURRENCIES VS U.S. DOLLAR Change on day at 0145 GMT : Currency Latest Previous Pct bid day Move Japan yen 110.670 110.73 +0.05 Sing dlr 1.361 1.3626 +0.14 Taiwan dlr 30.208 30.234 +0.09 Korean won 1126.20 1127.1 +0.08 0 Baht 33.270 33.323 +0.16 Peso 50.360 50.355 -0.01 Rupiah 13319.0 13320 +0.01 00 Rupee 63.795 63.80 +0.00 Ringgit 4.282 4.282 +0.00 Yuan 6.713 6.7214 +0.13 Change so far in 2017 Currency Latest End 2016 Pct bid Move Japan yen 110.670 117.07 +5.78 Sing dlr 1.361 1.4490 +6.49 Taiwan dlr 30.208 32.279 +6.86 Korean won 1126.20 1207.70 +7.24 0 Baht 33.270 35.80 +7.60 Peso 50.360 49.72 -1.27 Rupiah 13319.0 13470 +1.13 00 Rupee 63.795 67.92 +6.47 Ringgit 4.282 4.4845 +4.73 Yuan 6.713 6.9467 +3.49
Fundamental Forecast for EUR/USD: Neutral
- Although it picked up versus each real money, the Euro’s additions versus the US Dollar were kneecapped on Friday after an overall strong July US Nonfarm Payrolls report.
- The Euro might be at a bullish extraordinary, as indicated by three separate estimation markers, incorporating our in-house assessment perusing, the IG Client Sentiment gage.
The Euro was the best performing money a week ago after key Euro-Zone information readings, for example, the July CPI report and the underlying Q2’17 GDP discharge, meeting or beating desires. Notwithstanding, the Euro’s increases were essentially impeded on Friday after an inside and out strong July US Nonfarm Payrolls report. EUR/USD, in the wake of picking up as much as +1.36% to 1.0910 prior in the week, scarcely shut higher by +0.19% at 1.1773.
Inquisitively, the Euro fell more than whatever other money around the US occupations on Friday. Such uneven value activity around an occasion that doesn’t specifically affect the related money ordinarily implies that outrageous situating is in progress. Without a doubt, a gander at three separate estimation markers, incorporating our in-house supposition perusing, the IG Client Sentiment gage, recommend that the Euro is at a bullish extraordinary that may obstruct additionally picks up.
Market situating would manage that any shortcoming in the Euro in the close term would be of the benefit taking assortment. Despite the fact that situating has directed as of late, the Euro long exchange stays swarmed (generally). As indicated by the CFTC’s most recent COT report, there were 82.6K net-long contracts held by theorists in the prospects advertise for the week finished August 1, simply off of thehighest level since the week finished May 3, 2011 (when EUR/USD crested just underneath 1.5000).
Another pointer got from the fates advertise proposes Euro conclusion is at a bullish outrageous. The Daily Sentiment Index (DSI), which totals the feelings of dynamic dealers in US fates markets, is measured on a size of 0-100%. High readings (i.e. more noteworthy than 90%) recommend that a fleeting best is creating or has been made while low readings (i.e. under 10%) propose that a fleeting base is creating or has been made. As of Friday, August 4, Euro DSI was 93%, proposing that we might be close to a fleeting best.
The enormous issue pushing ahead for the Euro is by all accounts the Euro itself. The truth in FX markets is that with swelling so low, the Euro’s quality may just be endured for so long. The ECB’s specialized supposition for EUR/USD in 2017 is 1.0800; it shut a week ago just beneath $1.1750. As we’ve beforehand expressed, a couple of more long stretches of a solid Euro, average vitality costs, and diligent underperformance in expansion readings, and it’s anything but difficult to imagine the ECB disagreeing with the market’s hawkish elucidation of the approach alterations being made.
It appears that the Euro’s greatest days might be behind it. Given that the up and coming Euro-Zone monetary date-book is significantly lighter than in weeks past, and we are in the ordinarily light volume month of August (really the ‘canine days of summer’), an absence of information impetuses implies supposition and situating will assume a more prominent part in Euro value activity in the coming days.
Malaysia KLCI Barely Changed; 1771 Immediate Resistance Tipped
The Dow climbed above the 22,000 mark for the first time on Wednesday, buoyed by Apple’s healthy quarterly iPhone sales, while weakness in other tech stocks held back the Nasdaq and S&P 500. The DJIA rose rose 0.24% to end at 22,016.24, a record high. The S&P 500 gained 0.05% to 2,477.57 and the Nasdaq was flat at 6,362.65 Hang Seng down 0.5% at 27,474.06, with index set to end three day winning run. CK Hutchison Holdings, Cheung Kong Property Holdings fall at least 1.2% each, ahead of earnings later today. Standard Chartered Bank slumps 6.7% as lack of dividend overshadows 93% surge in pre-tax 1H profit.
Malaysia’s benchmark KLCI barely changed in early trade, now +0.02% at 1770.90. Asian shares mostly lower on profit taking after Wednesday’s rally. Axiata Group leads index gainers, +1.3% at MYR4.75. In broader market, gainers outpace laggards 248-to-230; about 529 million shares changed hands so far in deals worth MYR315 million. Bursa Malaysia Technology index extends rally, +0.5% at 37.77 tracking Apple’s overnight gains following strong earnings.
Malaysia KLCI Edges Higher; Likely To Trend Towards 1775 -Hong Leong
KLCI likely to open lower on profit taking amid lack of positive triggers; index ended +0.3% at 1770.61 yesterday. Overnight Dow Jones rose 0.2% to close above 22,000, led by gains in Apple following strong earnings. Brent crude up 1.1% at $52.36/barrel on decline in U.S. crude inventories. Shares in Malaysia and Singapore rose Wednesday as Asian stocks extended their recent rally, tracking overnight Wall Street gains. U.S. stocks rose Tuesday, with the Dow Jones Industrial Average hitting a record high for a fifth straight day. Global markets have not been affected by the recent U.S. political uncertainty over the healthcare bill, which has dragged the dollar index down to multi-month lows. Investor focus has remained on corporate earnings as a number of companies posted better-than-expected profits.
*The ringgit lost 0.01% to 4.2858 versus the US$
*It was up 0.02% to 5.0753 versus euro
*Up 0.07% to 5.6650 per pound sterling
*Up 0.07% to 3.1501 per Singapore dollar
*Up 0.40% to 3.3985 per Aussie
*Down 0.12% to 3.8746 per 100 yen
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Ringgit changed minimal 10-year govt yield up 1bp at 4.01%.
Markets by and large unbiased on MYR at give remote value inflows having moderated in recent months and higher-yielding security markets, for example, India and Indonesia drawing more premium, says Khoon Goh, head of Asia inquire about at ANZ in Singapore.
Expects USD/MYR to stay in 4.27-4.30 territory in the close term.
A beginning recuperation in Malaysian securities might be under risk because of the generally low level of the country’s FX save sufficiency and an estimate for expansion to quicken, as indicated by Western Asset Management and Investec Asset Management
Gold Candle Stick Chart
Daily Support and Resistance
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International Commodity News
- Gold prices edged lower on Monday, after rising to their highest level in around seven weeks overnight as market players looked ahead to a busy week of economic data, including the monthly U.S. jobs report. Besides the nonfarm payrolls data, this week’s calendar also features U.S. reports on personal income and spending, which include the personal consumption expenditures inflation data, the Fed’s preferred metric for inflation.
- U.S. natural gas futures fell sharply on Monday, hitting their lowest level in almost a month amid bearish weather forecasts that should limit demand for the fuel. U.S. natural gas for September delivery was at $2.851 per million British thermal units by 8:25AM ET (1225GMT), down 9.0 cents, or around 3%. It fell to its lowest since July 5 at $2.834 earlier in the session. Prices saw a drop of roughly 1% last week.
- Oil prices slipped on Monday, turning lower after hitting their strongest level in around two months overnight as investors cheered signs that the global crude market was starting to rebalance. The U.S. West Texas Intermediate crude September contract was at $49.45 a barrel by 8:40AM ET (1240GMT), down 26 cents, or around 0.5%. It touched its highest since May 30 at $50.06 earlier in the session.
- U.S. companies are likely holding back on investing in their businesses due to an uncertain outlook for government policies, Federal Reserve Vice Chairman Stanley Fischer said on Monday. Speaking in Rio de Janeiro, Fischer said uncertainty over the outlook for health care, regulation, taxes and trade could prompt firms to delay projects until the policy environment is clearer. Fischer did not mention the administration of President Donald Trump by name. Trump has pledged to overhaul health care, regulation, taxes and trade, but has had little success in getting his agenda through Congress.
- China’s central bank will continue to force financial institutions to cut debt but ensure the process is smooth and orderly to limit its impact on market liquidity, an assistant central bank governor said in remarks published on Monday.
- Higher short-term funding costs, driven by a regulatory crackdown on banks’ riskier financing, have started to spill over into the real economy, a risk to economic stability ahead of a five-yearly leadership transition later this year.
The Securities Commission Malaysia (SC) and Bursa Malaysia together facilitated the Responsible Investment Forum here today.
The occasion was sorted out by the United Nations’ (UN) upheld association – the Principles for Responsible Investment (PRI) gathering.
Every one of the three gatherings – SC, Bursa, and PRI – see this occasion as key to the activities to produce more prominent mindfulness on dependable contributing.
The discussion pulled in more than 200 participants, and offers significant data by partners including capital market controllers to additionally help in better understanding ESG issues.
Malaysia is all around known as the chief Islamic back market, and is at present leading the pack in advancing maintainable and capable contributing (SRI) suggestion in light of its common esteems with Islamic fund.
SC overseeing executive Zainal Izlan Zainal Abidin said the expanding mindfulness and interest for feasible and capable contributing all around is making huge open doors for advance Islamic back development.
“There is a shared trait in the standards and estimations of both (SRI and Islamic back) portions” he added.Zainal, who is the MD of Development and Islamic Markets of the SC likewise added that SC keeps on encouraging advancement of items and administrations that meet the necessities of both SRI and Islamic fund to guarantee the capital market serves the requirements of financial specialists and guarantors (alike)”.
As indicated by the SC, worldwide SRI resources have increment 25 percent over the two years from 2014 to 2016. This makes SRI resources between the two time frame totaling to US$ 22.9 trillion.
The Global Sustainable Investment Review 2016 detailed that Malaysia with 30% offer in Asia, barring that of Japan, frames the biggest SRI showcase in the locale. This is to a great extent since Malaysia perceives Shariah-consistent finances as a feature of the SRI universe.
Taking Islamic fund is a subset of SRI is a specialized definition utilized by the SC. And keeping in mind that this specialized definition has pulled in a few reactions from the market, these faultfinders have not yet possessed the capacity to shape solid contentions against Islamic back as being as a subset of SRI.
The Islamic capital market has been under flame recently following the absence of clearness in ward in controlling global Islamic fund papers, especially that of Islamic obligation papers. The Dana Gas sukuk non-shariah consistent paper has thrown a harming light into the absence of purview in the market in managing Islamic sukuk internationally.Malaysia however is the special case to this issue, since Malaysia exhibits a greatly clear locale on directing the Islamic money related market.
Along these lines, it exhibits an open door for universal financial specialists to see Malaysia as the chief spot to don’t simply Islamic back dealings, additionally SRI speculations also.
As per Hasif Murad, Investment Manager at Aberdeen Islamic Asset Management, “Malaysia is not a dollar security head advertise, but rather it is as yet an alluring sukuk showcase for the ringgit business since Malaysia gives an unmistakable locale attempted and tried court cases to test the purview and lawfulness of any Islamic papers”.
“Due to the legitimate lucidity, Malaysia may introduce itself as an intriguing dollar sukuk showcase later on” he included.
Malaysia has spearheaded the advancement of the Shariah-consistent SRI fragment through the SRI Sukuk system by the SC in 2014. From that point forward, the SC has been consistently growing more SRI speculation stores and these activities shape some portion of SC’s formative plan under the administration of the SC Chairman, Tan Sri Ranjit Singh.
On the whole, the SRI motivation has likewise been championed by Bursa Malaysia to initiate the value capital markets specifically. Bursa has propelled the FTSE4Good Bursa Malaysia Index in December 2014.
The FTSE4Good file is gone for exhibiting key organizations with solid Environmental, Social and Governance (ESG) hones.
Those organizations with solid ESG practices could conceivably have a more prominent perceivability among speculators that are keen on the SRI space.
As indicated by Bursa Malaysia, through an announcement together issued with SC today, the universally benchmarked FTSE4Good record was the primary ESG file propelled in Asia and has developed to contain 43 organizations now, from the underlying 24 constituents when it was first propelled in 2014.
Bursa Malaysia Chief Executive Officer, Datuk Seri Tajuddin Atan said at the discussion “Bursa Malaysia trusts that there is a solid incentive for organizations to receive manageability in a significant way”.
He additionally says that “Bursa Malaysia sets a win-win circumstance for key players over the esteem chain for our recorded guarantors and financial specialists”.
Additionally talking at the discussion is PRI Board Chairperson, Martin Skancke. He says that “with enthusiasm for the ESG developing quickly, (this gathering) gives a chance to financial specialists to construct their insight and consciousness of capable venture and empowers them to investigate drivers, patterns and practices”.
“PRI’s center mission is to advance dependable contributing and empower more far reaching ESG coordination” he included.
The United Nation’s supported body – PRI – works with worldwide system of signatories to incorporate the six Principles for Responsible Investment. These Principles are a deliberate and optimistic arrangement of venture rule that offer a menu of conceivable activities for fusing ESG issues into speculation rehearse.
Offers of Chinese property engineer Sunac China Holdings Ltd tumbled as much as 13.5 percent on Tuesday after a neighborhood media report said banks were taking a gander at the organization’s credit hazards after a noteworthy manage equal Dalian Wanda Group.
Sunac declared an arrangement a week ago to purchase tourism undertakings and lodgings in the nation from Dalian Wanda in a $9.3 billion give, one of China’s biggest property bargains. A vast piece of the arrangement would be subsidized by new obligation.
The offer value drop came after Chinese controllers advised banks to quit giving assets to a few of Dalian Wanda’s abroad arrangements as Beijing hopes to check the gathering’s seaward purchasing binge, sources told Reuters on Monday.
The offers had increased some ground by mid-evening exchanging and shut down 7.3 percent to HK$15.94, in line for their greatest one-day rate decrease since January.
Sunac’s bonds due 2019 fell 6 focuses to around 99 pennies on the dollar.
A report by Chinese distribution Jiemian.com, refering to anonymous sources, said prior on Tuesday that a few banks were evaluating dangers related with stretching out credit to Sunac, and ending a few advances reached out to the designer.
There are plans to get rid of the expression “Crude” to depict palm oil and the prized ware will rather be advanced as a Malaysian chief brand, said Datuk Seri Mah Siew Keong.
The Plantation Industries and Commodities Minister said the word was not an adept portrayal of the country’s biggest net fare product.
“There is no motivation behind why it must be called unrefined palm oil.
“The Malaysian Palm Oil Board will allude to the ware as Malaysian palm oil in future,” he said when propelling the thirteenth National Incorporated Society of Planters (ISP) Seminar yesterday.
While recognizing that palm oil might be confronting outlandish assaults from a few quarters, especially from the European Union, he noticed that the item held immense potential and has produced billions of ringgit for the country.
“Figures don’t lie and the palm oil industry is doing great. Palm oil trades have expanded by almost 31% amongst January and May this year, contrasted with a similar period a year ago,” he said.
He said the aggregate ware sends out, which incorporate palm oil, elastic, cocoa and pepper, expanded by 27% for a similar period and is required to achieve RM130bil this year.
Mah said he will be driving a two-day monetary and advancement mission to the Philippines today to advance the fare of palm oil and elastic items to the Asean country.
He said Malaysia traded RM2.46bil worth of palm oil, elastic and related items to the Philippines a year ago, while sends out totalled RM1.983bil for the initial five months of this current year.
Mah said utilized palm oil part can be transformed into creature sustain and enable the poultry business to lessen the import of corn, costing some RM2bil a year.
ISP has somewhere in the range of 17,235 enrolled individuals and its distribution is flowed in 45 nations.
There is idealism that the country’s oil and gas industry is headed straight toward recuperation, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
“If 2016 was the ‘year of tough decisions’ for the oil and gas industry, then 2017 could well be the year for the road to recovery,” he said when launching the 16th Oil and Gas Asia 2017 Exhibition.
He refered to the cases of the Organization of Petroleum Exporting Countries’ market gauge and late overview by Reuters that Brent unrefined petroleum could normal US$58.20 (RM250.12) per barrel this year as cases of positive signs for the business.
He included that Petronas had taken measures to diminish capital venture by 22% while cutting “controllable expenses” by 8% a year ago.
Ahmad Zahid said he likewise stayed certain that Malaysia’s oil, gas and vitality (OGE) area would accomplish 5% yearly development focus until year 2020.
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Malaysia’s aggregate palm oil stocks in June 2017 declined 1.93% to 1.53 million tons from the 1.56 million tons recorded in May.
Crude palm oil (CPO) stocks, be that as it may, ascended by 1.23% to 798,387 tons amid the month in survey from the 788,702 tons enrolled a month before.
Loads of handled palm oil declined 5.16% to 728,656 tons from 768,334 tons, the Malaysian Palm Oil Board (MPOB) said in an announcement yesterday.
On creation, the MPOB said CPO yield fell 8.48% to 1.51 million tons in June from the 1.65 million tons recorded in the earlier month.
Palm bit yield slipped 8.5% to 370,806 tons in June versus May’s generation of 405,274 tons.
The board said palm oil trades diminished 8.39% to 1.40 million tons in June from 1.51 million tons in the earlier month.
Fare of oleochemicals climbed 10.24% to 211,479 tons from 191,831 tons in May.
Palm bit oil sends out fell 16.27% to 68,219 tons in June from the 81,478 tons recorded in the earlier month, while palm piece cake facilitated 1.08% to 156,974 tons from 158,974 tons.