Market Update - 19 June 2013

• Wall Street continued to advance for the second consecutive day, with Dow +0.91%, S&P +0.78% and Nasdaq +0.87%, as US inflation data showed that the economy is stabilizing amid better economic sentiment in Germany. 

• Draghi said that ECB will aid the Eurozone economy if necessary and added that its policy rate is an effective tool again as market showed signs of stabilization. Meanwhile, RBA sees more scope for rate cuts given its inflation outlook. 

• Asian stocks rallied, pushing the benchmark equity index to a two-week high, as the yen drove declines among regional currencies on prospects the Federal Reserve will signal the fate of US monetary stimulus today 

• KLCI inched higher on Tuesday, posting 0.11% gains in the day. Some positive remarks from PM Najib regarding Malaysia’s fiscal consolidation plans are also worthy to take note of, although the local bourse is clearly waiting for fresh cues from the upcoming FOMC statement 

• Concerns of further capital outflows have weighed on the MYR on Tuesday, and the USD/MYR is currently trading above the 3.1600 level. The upside bias in the pair may sustain for now, with firm support at the 3.1300 mark, today’s expected trading range is 3.1550 - 3.1750