MONEY MASTER

  Global Markets Indices:  Dow -0.02%, S&P 500 +0.03% (3rd straight record close), Nasdaq -0.01% Drivers:  Hotter-than-expected July PPI showed the largest jump in US services costs since Mar 2022, trimming odds of a larger September Fed rate cut to 90%. Jobless claims fell, indicating labour market strength. Yields:  US 10Y Treasury at 4.29% as stronger inflation data pressured bonds. Notable Stock Move:  Intel +7.38% on reports of potential Trump administration investment to fund Ohio chip plants, part of efforts to boost domestic semiconductor output. Malaysia Market Macro:  USD/MYR +50 pips to 4.2125; MGS 10Y steady at 3.48% KLCI:  1,581.05 (-5.55 pts) on profit-taking after recent gains. Sector Performance:  Gainers – Property (+0.39%), Energy (+0.25%), Telecommunications (+0.11%); Laggards – Transportation (-1.11%), Technology (-0.86%), Consumer (-0.77%). Trade in Focus ECOWLD (8206.MY):  Jumped to RM2.17 (highest since 2014) with v...

Asian equities are set for a cautious open after  stronger-than-expected US wholesale inflation  curbed Wall Street’s momentum and lifted Treasury yields, trimming bets on aggressive Federal Reserve rate cuts. Futures:  Australia & Japan point to gains, Hong Kong futures lower. Wall Street:  S&P 500 flat after a 30% rally since April lows;  Intel  surged on reports of a potential US government stake;  Applied Materials  gave a weak forecast after hours. Rates & FX:  US 2-year Treasury yields +6bps to  3.73% ; September Fed rate cut odds slipped to ~90%. USD rose; Bitcoin pulled back from record highs. Inflation Data:  July PPI rose at the fastest pace in 3 years, reflecting higher import costs from tariffs. CPI earlier in the week suggested milder pass-through; Fed still expected to cut next month but the strength in wholesale prices could temper the pace. Regional focus: China:  July retail sales and industrial out...

As 2024 winds down, global markets are entering a pivotal week filled with data releases and corporate updates that could set the tone for 2025. With inflation figures, earnings reports, and central bank decisions on the horizon, investors have their eyes on key markets from the United States to Southeast Asia. United States: Inflation Data and Earnings in Focus Inflation Report: The US inflation report for November, due on Wednesday, will be the centerpiece of the week. Year-on-year inflation is expected to tick up slightly to  2.7% , while core inflation remains steady at  3.3% . These figures will influence the Federal Reserve's stance as its December meeting approaches, potentially signaling whether the Fed continues its hawkish trajectory or pivots to a more accommodative policy in 2024. Earnings Highlights: Major companies set to report include: Oracle (NYSE: ORCL):  Investors are keen on updates about its  cloud and AI strategies , which continue to drive grow...

As the year winds down, global markets brace for a pivotal week marked by  key economic data, corporate earnings, and central bank decisions . Here’s a snapshot of what’s at stake: United States: Inflation and Corporate Earnings in Focus Inflation Data (Wednesday) : November CPI  is expected to rise slightly to  2.7%  year-on-year (from 2.6% in October), while  core inflation  holds steady at  3.3% . These figures will influence the  Federal Reserve’s policy stance  ahead of its  December meeting , where a rate cut is widely anticipated. Earnings Highlights : Oracle Corporation (NYSE: ORCL) : Positioned as a leader in  cloud and AI , Oracle’s results will spotlight its role in digital transformation. Adobe Inc. (NASDAQ: ADBE) : Focus will be on  AI integration  across its platforms, a key driver of its growth narrative. Broadcom Inc. (NASDAQ: AVGO) : Anticipated to deliver insights on the booming  AI-driven semiconduc...

Wall Street Highlights Nasdaq Hits Historic High : The $Nasdaq Composite Index (.IXIC.US)$ closed at  20,050 , up  1.77% , marking the first time it surpassed the  20,000-point milestone . The S&P 500 closed near record highs at  6,090.27 , while the Dow Jones Industrial Average fell  0.2% . Inflation Data : U.S. inflation aligned with forecasts, bolstering expectations for a  Federal Reserve rate cut  next week. November's CPI rose  0.3%  month-over-month, with core CPI also up  3.3% year-over-year , maintaining market confidence. Breaking News: Malaysia Economic and Market Updates Record Investment Approvals : Malaysia approved  RM254.7 billion  in investments for  9M24 , reflecting a  10.7% YoY growth . These investments are expected to create over  159,000 jobs , driven by the government's commitment to sustainable, high-impact initiatives. Malaysia aims to rank among the  top 30 global economies by ...

Foreign investors are exiting   Indonesian stocks   for the   15th straight session , marking an   equity outflow   of   US$891 million (RM3.96 billion)   so far in November, according to   Bloomberg   data. This has pushed the nation’s   benchmark equity index   to the brink of a correction, dropping   9%   from its record high on   Sept 19 . The retreat is fueled by a  stronger US dollar  and  higher treasury yields , triggered by expectations that  President-elect Donald Trump’s policies  will heighten US inflation and limit Federal Reserve  rate cuts . The  rupiah  has weakened  1%  this month, while foreign investors have also sold  US$810 million  worth of Indonesian  government bonds , poised for their first monthly outflow since  April . “What was initially a major  tailwind for ASEAN , such as a  weaker dollar  and lower rate...

Wall Street’s main indexes were mostly flat on Tuesday, stabilizing after recent post-election gains. Investors are now turning their attention to critical US inflation data expected later this week, which will likely shape the outlook for economic and monetary policy . Several stocks that initially surged following President-elect Donald Trump’s win saw modest declines. Tesla , which had gained nearly 40% since November 5, dipped 2.5%, affecting the consumer discretionary sector , which slid 0.3%. The Russell 2000 index of small-cap stocks fell 0.2% after reaching a three-year high, and Trump Media & Technology Group shares dropped 7.7%. The Dow Jones Industrial Average added 107.69 points (0.24%) to reach 44,400.82 , while the S&P 500 rose 6.11 points (0.10%) to 6,007.46 , and the Nasdaq Composite was up 9.09 points (0.05%) to 19,307.85 . Honeywell shares surged 5.2% after Elliott Investment disclosed a $5 billion stake in the industrial giant, helping to lift the bl...

US inflation likely moderated at the end of the third quarter, offering reassurance to the Federal Reserve , which is shifting focus towards protecting the labor market . The consumer price index (CPI) is expected to rise 0.1% in September , its smallest gain in three months, and 2.3% compared to a year earlier , marking the sixth consecutive slowdown and the lowest since early 2021. The core CPI , excluding volatile food and energy, is projected to increase 0.2% month-over-month and 3.2% year-over-year . This moderation follows strong September job growth and suggests that policymakers may opt for a smaller interest-rate cut when they meet in November . Fed Chair Jerome Powell has signaled quarter-point rate cuts for the final two meetings of 2024, based on current projections. The CPI and producer price index (PPI) , along with consumer sentiment data, will guide the Fed's approach in the coming months as it balances inflation control with labor market stability.

US import prices fell by the most in eight months in August, driven by lower costs across a wide range of goods. This decline suggests that domestic inflation is likely to continue to subside in the coming months. According to the Labor Department report released on Friday, the decrease in import prices aligns with recent data showing only mild increases in producer and consumer prices in August, despite persistent underlying inflation. With price pressures easing, the Federal Reserve has shifted its focus to the labor market, which has slowed significantly from last year’s robust growth. "The inflation flare-up early in the year is no longer evident in the prices of imported goods coming into the country, which is another reason to believe that the balance of risks has shifted for Fed officials back to downside risks for the economy and labor market," said Christopher Rupkey, chief economist at FWDBONDS . Import prices fell 0.3% in August , marking the largest decline ...

Former Federal Reserve Bank of New York President William Dudley has suggested a compelling case for a half-point interest rate cut at the Federal Reserve's meeting next week. Speaking at a forum organized by The Bretton Woods Committee in Singapore, Dudley stated, "I think there’s a strong case for 50," highlighting his preference for a more aggressive monetary policy move. Dudley, who led the New York Fed until 2018 and now chairs the Bretton Woods Committee, pointed to a slowing US labor market and emphasized that the risks to jobs are more significant than ongoing inflation challenges. He referenced Fed Chairman Jerome Powell's comments at Jackson Hole last month, which underscored a desire to prevent further weakening in the labor market. Dudley's remarks arrive as recent data showed core US inflation unexpectedly rose in August , reinforcing the likelihood of a quarter-point rate cut next week. Despite this, Dudley believes there is room for a more subs...

US core inflation, which excludes volatile food and energy prices, unexpectedly rose in August, diminishing the odds of a significant interest-rate cut by the Federal Reserve next week. The core consumer price index (CPI) increased by 0.3% from July and 3.2% from a year earlier, driven by higher costs for housing and travel. Key Takeaways: Unexpected Inflation Pickup : The core CPI's 0.3% increase in August marks the highest monthly rise in four months, while the three-month annualized rate climbed to 2.1% from 1.6% in July. This is seen as a stronger indicator of underlying inflation trends compared to the overall CPI, which rose by 0.2% from the previous month and 2.5% year-on-year, marking its fifth consecutive month of decline due to lower gasoline prices. Impact on Federal Reserve Policy : While the inflation reading is not expected to deter the Fed from cutting rates next week, it lessens the likelihood of a larger, half-point cut. The Fed remains focused on labor market soft...

Asian stocks fell on Wednesday, driven by concerns over global growth, the impact of the U.S. presidential debate, and an anticipated U.S. inflation report. The yen gained strength after a Bank of Japan (BOJ) member indicated potential for further interest-rate hikes. Key Takeaways: Market Reactions to Economic Indicators and Events : The region’s equities gauge declined for a third consecutive session, led by Japan and Hong Kong, as traders prepared for the U.S. consumer price index release and the Federal Reserve's policy meeting next week. Concerns over global growth were heightened by a drop in oil prices below $70 per barrel and lower U.S. Treasury yields. Currency Movements and Policy Expectations : The dollar edged lower while the yen reached its strongest level against the greenback since January. This shift followed comments from BOJ policymaker Junko Nakagawa, who suggested that the BOJ would adjust its easing measures if economic conditions aligned with expectations. The...

Asian shares made a modest recovery on Tuesday, reversing early losses after a rally on Wall Street, but concerns over China's struggling economy kept investor sentiment cautious. Key Takeaways: Asian Markets Rebound Following Wall Street Gains : The MSCI Asia-Pacific index outside Japan rose 0.2%, recovering from a 1.11% drop in the previous session, which marked a one-month low. Japan's Nikkei also gained 0.4%, supported by financial and consumer stocks. The positive momentum followed Wall Street's overnight rally, where all three major US stock indices surged more than 1% as risk-off sentiment stabilized. Focus on US Inflation Data and Fed Rate Cuts : Markets are closely watching the upcoming US inflation data, expected to show a slowdown to an annual 2.6% in August. A deviation from this forecast could impact the number and pace of Federal Reserve rate cuts. Currently, markets are pricing in a 29% chance of a 50-basis-point rate cut next week, with a total of 110 basis ...

  Gold prices dipped slightly on Wednesday as investors awaited a critical U.S. inflation report that could influence the Federal Reserve’s policy decision in September. Key Highlights: Gold’s Slight Decline: Spot gold eased 0.2% to US$2,460.87 per ounce by 0327 GMT, following a record high of US$2,483.60 last month. U.S. gold futures also inched down 0.3% to US$2,500.30. Focus on U.S. Inflation Data: Investors are holding back as they await the U.S. Consumer Price Index (CPI) data for July, expected to show a 0.2% month-on-month inflation increase. The data could be pivotal in setting the tone for the Federal Reserve's upcoming policy meeting. Potential Gold Price Drop: According to financial market analyst Kyle Rodda, gold could drop to US$2,300 if the CPI data does not align with expectations for a rate cut. However, a weakening U.S. economy could push gold prices higher in the long term as the Fed may be forced to cut rates significantly. Cooling Inflation Signs: U.S. produ...

Gold prices edged lower on Tuesday as investors booked profits after bullion hit a more than one-week high. Market participants are now turning their attention to key US inflation data, which could provide crucial insights into the Federal Reserve's upcoming policy decisions. Key Highlights: Gold Price Movement: Spot gold fell by 0.4% to $2,462.19 per ounce by 0259 GMT after reaching its highest level since August 2 earlier in the session. This follows a more than 1% rise in the previous session. US gold futures remained relatively unchanged at $2,502.40. Profit-Taking: The dip in gold prices is attributed to profit-taking, as traders capitalize on recent gains. Tim Waterer, chief market analyst at KCM Trade, noted that gold had a solid start to the week but eased slightly due to moderate profit-taking. US Inflation Data: Investors are eagerly awaiting the release of July US producer price figures later today, followed by the consumer price index (CPI) data on Wednesday. These r...

Asian stocks edged higher on Monday, supported by a holiday in Japan that reduced market volatility. Investors are keenly anticipating significant US and Chinese economic data that could provide insights into global growth prospects. The upcoming US consumer price index (CPI) report, expected on Wednesday, is crucial for the US Federal Reserve's (Fed) next steps. Economists forecast a 0.2% rise in both headline and core CPI, with the annual core rate slowing slightly to 3.2%. This data could reinforce the Fed’s belief that disinflation is ongoing, potentially leading to a rate cut in September. However, a core inflation rate still above target might argue against a larger cut. July retail sales in the US are expected to show a robust 0.8% month-on-month increase, reflecting the resilience of consumer spending, driven by strong income and wealth fundamentals. Alongside this, data on industrial output, housing starts, and regional manufacturing and consumer sentiment surveys are also...

  The Federal Reserve's preferred measure of underlying US inflation rose at a moderate pace in June, while consumer spending remained resilient. These indicators provide encouraging signs for officials aiming to cool inflation without causing economic harm. Key Points: Core Personal Consumption Expenditures (PCE) Price Index: Increased by 0.2% from May. Rose 2.6% year-on-year, according to the Bureau of Economic Analysis. On a three-month annualized basis, core inflation cooled to 2.3%, the lowest since December. Consumer Spending: Inflation-adjusted consumer spending increased by 0.2%. May’s consumer spending increase was revised higher. Market Reaction: Treasuries rallied. Stock futures remained higher as the inflation data matched expectations. Fed's Tightening Campaign: The data suggests the Fed's efforts to manage inflation are working without significantly harming the economy. The Fed is expected to keep interest rates unchanged at their upcoming meeting. Investors a...

  European shares and US stock futures bounced back on Friday, stabilizing after a turbulent week where global equities fell nearly 2%. The dollar also regained ground against the yen. Key Points: US Inflation Data: The US personal consumption expenditures index, the Federal Reserve's preferred inflation measure, slightly cooled to 2.5% year-on-year in June. Traders' expectations for two or three Fed rate cuts this year remained unchanged. Market Performance: S&P 500 futures rose 0.72%, following a 1.9% weekly decline up to Thursday. Nasdaq futures, which had dropped 7% over the past two weeks, increased by 1%. The STOXX 600 index in Europe climbed 0.58%, set to end the week 0.4% higher after a 2.7% loss last week. Germany's DAX index rose 0.46%, and Britain's FTSE 100 gained 1%. Sector Rotation: Recent cooler US economic data sparked hopes for Fed rate cuts, leading investors to favor smaller companies tied to the economy and borrowing costs. Popular artificial int...

  US prices saw a moderate increase in June as a decline in goods prices helped offset a rise in service costs. This development suggests an improving inflation environment, potentially positioning the Federal Reserve to begin cutting interest rates in September. Key Points: Moderate Price Increases: The personal consumption expenditures (PCE) price index rose 0.1% in June, following a flat reading in May. Goods prices fell by 0.2%, while services costs increased by 0.2%. Yearly Gains: The PCE price index climbed 2.5% year-on-year, the smallest increase in four months, down from 2.6% in May. The core PCE price index, which excludes food and energy, rose 0.2% in June, maintaining a 2.6% year-on-year increase. Consumer Spending Slowdown: Consumer spending increased by 0.3% in June, down from 0.4% in May. When adjusted for inflation, real consumer spending rose 0.2% after a 0.4% increase in May. Personal income growth slowed to 0.2%, with wages rising 0.3%. Economic Impact: Econom...