Market Update - 24 June 2013

• Wall Street closed mostly higher last Friday, with Dow +0.28% and S&P +0.27% while Nasdaq -0.22%, after two straight days of losses. 

• St Louis Fed’s Bullard felt that the Fed’s announcement of reduction in bond buying was wrongly timed and worried that the credibility of Fed is at stake. Meanwhile, Canada’s CPI rose less than expected at 0.7% yoy (0.2% mom) in May. 

• The Japanese yen slumped, spurring gains in Japanese stocks, as investors digest the prospect of reduced Federal Reserve stimulus as the outlook for US economy improves. 

• The KLCI closed 0.37% lower on Friday but likely to get some boost at the start of the fresh week, following some positive cues from Wall Street. 

• China may adjust its monetary policy as needed while seeking more efficient use of the nation’s financial resources as a cash squeeze in the banking system risks exacerbating an economic slowdown 

• USD/MYR continues to remain supported above the 3.2000 mark. Today’s expected trading range 3.2050 – 3.2200.