Ringgit’s Fundamental Remains Intact Although Volatility Expected In The Short-Run
The inflow in the current account on account of the increased price of crude oil and crude palm oil would more than offset the outflow of funds in the financial account keeping the ringgit resilient, an economist told Business Today.
Sunway University Professor Dr. Yeah Kim Leng said that Malaysia was having a tide of inflow of foreign direct investment (FDI) and the increased savings in the country that could help offset any downward pressure on the ringgit. To read the full story click here
Income investing in Asia: Building resilience with Asian REITs and dividends
Against an uncertain global economic outlook, a stable income stream is an attractive proposition for investors.
Investors today face concerns over rising inflation and higher interest rates. This is in stark contrast to the past few decades of low-interest rates and declining bond yields. Nevertheless, despite rising interest rates, we believe that there are still attractive opportunities in selected income strategies, particularly in Asian REITs and dividend-paying Asian equities where new growth drivers are emerging. To read the full story click here
US Dollar Rises Towards A 20 year High, EURO Dips
The US dollar rises to a 20-year high as the EURO continued to slip to $1.05 on the back of weak data coming from the manufacturing sector.
Under pressure, the EURO is affected by manufacturing output growth in the euro zone, which stalled last month as factories struggled to get raw materials and demand faltered due to the high price of goods. To read the full story click here
Global Economy Poised For Divergence In The Era Of High Interest Rates
Global inflation has continued to climb throughout this year, posing a severe obstacle to economic recovery and development in all countries.
According to researchers at ANBOUND, this has put central banks throughout the world in a quandary: should they maintain interest rates low to continue driving the economic recovery, or should they raise rates to accomplish the inflation targets of monetary policy? For the moment, Federal Reserve, the most influential central bank in the world, has already made its choice to adopt an unconventional pace of policy tightening. European Central Bank (ECB) has also begun the pace of reducing the accommodative. To read the full story click here
Malaysian Manufacturing Sector Starts Humming Again In April
S&P Global said on Thursday that Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in April from 49.6 in March, indicating a renewed improvement in the sector.
In a statement, S&P said that the uptick in the headline figure was led by a sharp recovery in new order volumes, with the growth of new business hitting an eight-year high. To read the full story click here
Most Aggressive Rate Hike by Feb in 2 Decades
The US Federal Reserve approved a half-percentage-point interest rate increase on Wednesday to stem the highest inflation rate in 40 years.
This came as the second hike in two months and the biggest increase in 22 years.
The last rate hike of 50 basis point was in 2000. The Fed usually lifts interest rates in incremental move of 25 basis point. To read the full story click here
US Fed Hikes As The 3 Big Economies Head Into Recession
The ‘look across the valley it is all priced in’ approach was in full swing on the day. We saw a huge two-hour rally post the rate hike from the US Federal Reserve.
This was not profit-taking on short positions. This was pure Wall Street mania, that they are smarter than the obvious and could look ahead to the other side?
As such, this rally could have at best another 24 hours to run. It is however a key range break to the upside in price action terms and this alone could feed further buying. Particularly from momentum models. To read the full story click here
