MONEY MASTER

Key Takeaways Bitcoin fell to its lowest level in 21 months , pressured by expectations of higher US interest rates and persistent ETF outflows. More than US$4 billion exited US-listed Bitcoin ETFs in June , highlighting weakening institutional demand. Concerns over Strategy's future Bitcoin purchases  have undermined confidence in one of the cryptocurrency's largest corporate supporters. Bitcoin has dropped over 50% from its record high  and fallen below its 200-week moving average, reinforcing bearish technical sentiment. This week's US nonfarm payrolls report  could become the next major catalyst for cryptocurrency markets. Market Overview Bitcoin  extended its sharp decline on Wednesday, falling to  US$57,742 , its lowest level since September 2024, as investors continued to reduce exposure to risk assets amid growing expectations that the  US Federal Reserve  will keep monetary policy tighter for longer. The cryptocurrency has struggled under the ...

Key Takeaway:  Malaysia’s equity market is expected to perform more robustly in 2026, aided by easing U.S. interest rates, a softer dollar, and renewed government-led reform momentum. Market Snapshot Index Latest Change FTSE Bursa Malaysia KLCI  — -0.31% RHB Investment Bank’s analyst  Alexander Chia  expects Malaysia’s equity market to gain strength next year as both  external and domestic factors  align to support recovery. Key Drivers of Optimism Global Tailwinds: Improved clarity on tariffs  and trade policy. Easing U.S. rates  expected to boost regional liquidity. Softer U.S. dollar  may attract foreign inflows into emerging markets. Domestic Catalysts: Ongoing  economic reform efforts  by the Malaysian government. Record-low foreign ownership  levels offer ample room for re-rating. Growth initiatives  expected to strengthen domestic demand and investment confidence. Investment Opportunities Chia sees value emerging ac...

With the Federal Reserve's recent rate cut , banks that borrowed from the Bank Term Funding Program (BTFP) , established after the collapse of Silicon Valley Bank, may start repaying their loans faster. This could lead to a drain in liquidity from the financial system, according to RBC Capital Markets strategist Izaac Brook. The BTFP , launched in 2023 to support struggling financial institutions, surged in popularity, with borrowing peaking at US$168 billion earlier this year. However, after the Fed slashed rates by half a percentage point , the program’s attractiveness has waned. Brook noted that we might soon see an increase in early loan repayments as the cost of borrowing through the BTFP is now less appealing. Many financial institutions tapped the program to take advantage of its favorable terms , which included a one-year overnight index swap rate plus 10 basis points and no penalty for early repayment . However, borrowing has since declined, with the latest data showin...

Anticipated US interest rate cuts are prompting investors to diversify beyond Big Tech stocks. Since early 2023, companies like Nvidia, Microsoft, and Amazon have driven substantial returns, but a recent cool inflation report has heightened expectations for a Federal Reserve rate cut, making other market sectors more attractive. Market Shifts and Performance Recent market movements suggest a shift may already be underway. The tech-heavy Nasdaq 100 saw its biggest drop of the year, while the small-cap Russell 2000 experienced its best day in 2024. The Nasdaq 100 is up 21% this year, whereas the Russell 2000 has only gained 6%. Broader Market Potential Lower rates are expected to benefit underperforming sectors such as small-caps, real estate, and industrials. Fed fund futures indicate a nearly 90% chance of a 25 basis point rate cut at the Fed's September meeting. Smaller companies and industrials, which rely on credit and debt, stand to gain the most from lower rates. Equity Valuat...