Key Takeaways Renewed US-Iran tensions pushed Brent crude briefly above US$80 , reigniting concerns over global energy supplies. Despite geopolitical uncertainty, Wall Street avoided a sharp sell-off , suggesting investors believe the conflict remains manageable for now. Higher oil prices have revived expectations of a Federal Reserve rate hike , as markets worry about renewed inflation. Technology stocks remained relatively resilient , showing that AI continues to provide underlying support for equities. The next move in oil prices could determine whether market volatility returns. Market Insight When news broke that the US had launched fresh strikes on Iran , investors immediately rushed into the oil market. Brent crude briefly climbed above US$80 a barrel , as fears grew that escalating tensions could disrupt supplies through the Strait of Hormuz , one of the world's busiest energy shipping routes. Yet the reaction in equities was far more measured. Although the S...
2015 has been a rather forgettable year for Malaysia. The FBM KLCI closed at 1,761.25 points on 31st December 2014 but was last seen at 1,663.51 points on 23rd December 2015 before the market was closed for public holidays on 24th and 25th December....it's a drop of about 5.5%. That is before the Ringgit is being taken into consideration. The RM was one of the worst performing currencies in 2015. Chart taken from marketwatch.com How 2016 will look like for Malaysia is the BIG QUESTION mark as we head into 2016 within a week's time. Emerging economies slowdown has been a real concern to global economy including Malaysia, especially with China. The slowdown is exerting downward pressure on commodity prices. While we are expected to see an improvement in the US economy and a moderate recovery in the Eurozone, 2016 is also the year where China is expected to see further decline in their growth. This has hurt the Asian economies as weaker global trade and softer dom...