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Russia Holds Key Rate at 21% Amid Surging Inflation

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...

Market Daily Report: KLCI drifts lower on profit taking after Trump's impeachment



KUALA LUMPUR (Dec 19): The FBM KLCI drifted lower today on profit taking, amid fears of a more uncertain outlook following the impeachment of US President Donald Trump.

At the 5pm closing bell, the KLCI was down 0.21% or 3.39 points at 1,595.72. Rakuten Trade Sdn Bhd vice president of equity research Vincent Lau told theedgemarkets.com that the profit taking came after the strong surge in the benchmark index on Wednesday, which saw it climbed 1.41% or 22.16 points higher to close at 1,599.11.

He also attributed the sluggish performance seen in the KLCI today to the impeachment of Trump, which has cast more uncertainties on outlook. Nevertheless, he said the KLCI should still end the year at no less than 1,600, after factoring in the usual year-end window dressing initiatives.

Trading volume declined to 2.11 billion shares worth RM1.7 billion from yesterday's 2.5 billion shares worth RM2.03 billion. Market breadth was negative with 538 decliners compared with 262 gainers, while 425 counters traded unchanged. 
 
The top decliners included IHH Healthcare Bhd, Fraser & Neave Holdings Bhd, Lebtech Bhd, Inari Amertron Bhd and Petronas Gas Bhd. Inari also topped the actives list, together with Priceworth International Bhd, KNM Group Bhd, Ekovest Bhd and Yong Tai Bhd.

The gainers, meanwhile, included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, PPB Group Bhd, Carlsberg Brewery Malaysia Bhd and Heineken Malaysia Bhd.

Elsewhere in Asia, Japan's Nikkei 225 fell 0.29% and Hong Kong's Hang Seng was down 0.30%. While South Korea's Kospi edged up 0.08%.

Reuters reported that Asian shares pulled back from a one-and-a-half year peak on Thursday as investors booked profits ahead of the holidays and awaited further data on the state of the global economy.

Investors were also watching proceedings in Washington where the Democrat-led US House of Representatives voted to impeach Republican's Trump for abuse of power and obstruction of Congress.



Source: The Edge

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