Market Update - 16 July 2013

• Wall Street closed higher on Monday, driven by China’s 7.5% yoy Q2 GDP growth, while the July Empire Manufacturing data in the US offset the disappointment created by the June retail sales data. Dow +0.13%, Nasdaq +0.21% and S&P500 +0.14%. 

• Sentiment also received a boost after Citigroup posted a 42% increase in Q2 profits. Bernanke’s testimony to the Congress on Wednesday will be the key factor to watch out next, as market continues to trade alongside QE3 tapering expectations. 

• Asian stocks rose, following US equities higher, as Citigroup’s better-than-estimated results fueled optimism over company earnings and investors weighed the outlook for China. 

• KLCI posted decent gains to start the week on Monday, partly driven also by the Chinese data.  A break of the 1800 psychological level is the key target in the market. 

• USD/MYR looks supported above the 3.1800 mark. Today’s expected trading range is 3.1750 – 3.1950