Market Update - 17 July 2013

• Wall Street closed lower with the DOW -0.21%, the S&P -0.37% and the NASDAQ -0.25%, as investors remained anticipative over Bernanke’s testimony later tonight. 

• US CPI gained higher than expected of 1.8% yoy, nearing the 2.0% Fed’s inflation target as an early sign of a monetary unwinding. 

• Japan stocks led most Asian equities lower after a Federal Reserve official called for cuts to stimulus ahead of Chairman Ben Bernanke’s address to the congress later today. 

• A lack of fresh cues in the market led to most investors preferring to remain on the sidelines and the KLCI ended up almost where it had started the session. The 1790 interim resistance still sustain for now and the cautious tone seen in Wall Street overnight is likely to spillover to the local bourse this morning. 

• Malaysia’s June CPI is due later today but we expect little reaction in the market. 

• USD/MYR is likely to hover around the 3.1800 level for the time being. Today’s expected trading range 3.1750 – 3.1950