Market Update - 25 July 2013

• Wall Street closed lower with the DOW -0.16%, the S&P -0.38% and the NASDAQ +0.01% following the latest round of corporate earnings. US home sales rose 8.3% in June while US Markit PMI rose to 53.2 in July from 51.9 previously. 

• European shares were higher on the back of an 18-month high flash PMI at 50.4, while French and German PMIs also ticked higher. 

• In China, the HSBC PMI fell to 47.7 in July, fueling market fears of a further slowdown. 

• Asian stocks fell, pushing the regional benchmark lower for a second day and emerging-market currencies weakened as investors weighed US economic data to gauge the fate of Federal Reserve stimulus. 

• The KLCI closed at another record high 1810.00. Foreign fund inflows were once again visible in the session, as we also note that global risk appetite has improved in recent sessions. 

• USD/MYR is back around the 3.2000 mark on the back of the stronger broad USD tone in the market. Expect the pair to trade around the 3.1700 – 3.2200 range for the short-term.