The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Crude oil price seems to have recover and stabilize.
To a certain extend, this was in line with what we thought on December 13th in regards to the oil near bottom.
While I'm blogging this, the crude oil price (WTI) is at USD56.13 while the crude oil (brent) is at USD60.73 per barrel. It has dropped a bit but we personally feel that the oil price will not see any more sharp decrease.
The market probably feels the same way as FBM KLCI climbed 28.06 points or 1.64% as investors bought beaten blue-chip stocks.
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| FBM KLCI climbed 28.06 points (1.64%) today |
However, caution must be taken as there are analysts that feel that the crude oil (brent) might fall below USD60 per barrel, but we're quite close to that mark already anyway.
The top gainers for today are Petronas Gas Bhd and consumers counters like Dutch Lady and Nestle. The top decliners are Icon and Hong Leong Bank Bhd.
Regionally, Japan's Nikkei 225 and Hong Kong's Hang Seng Index both rose 0.08% and 1.26% higher.
It has been a good day for the FBM KLCI but caution should be taken for tomorrow's trade as the oil price showed some decline movement....things are still very volatile so it'll be difficult to see a strong rally towards 2015.
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