As for FCPO, market eased yesterday in an erratic trading session. Selling was led by profit taking in the absence of fresh factors. Stronger ringgit, which gained about 0.6 pct vs USD, and lower crude mineral oil undermined sentiment. Losses were held by prospects of better demand and forecast of below average Indian monsoon in 2015. Prices were 10 to 34 lower in the morning and were 28 to 7 lower in the afternoon on better support towards close.
Generally, the short term outlook is positive. Exports are improving while current stocks are relatively low. The levy of USD50 per tonne on CPO exports by Indonesia is expected to start in May which will likely draw more demand to Malaysia. India imports are expected to increase with poor monsoon, while Chinese demand will be boosted by the economic stimulus like reducing bank reserve requirements, etc.
Technical view - prices pull back from recent gains to stay within the 2100 - 2200 trading range. Trend sideways ; RSI 46.71 ; parabolic SAR at 2200 ; support 2130 / 2100 / 2080 / 2050 ; resistance 2205 / 2250 / 2280.
As for other news...
🇺🇸 U.S. stocks closed about 0.5% higher, ending a day of choppy trade as investors weighed mixed earnings and signs of strength in the housing market. March existing home sales increase +6.1% to 1-1/2 year high.
* US weekly Unemployment claims expected to show a -7,000 decline to 287,000.
* US April manufacturing PMI index expected unchanged from March at 55.7.
* March New home sales expected to fall back from Feb's 7-year high, show a decline of -4.5% to 515,000.
* US weekly Unemployment claims expected to show a -7,000 decline to 287,000.
* US April manufacturing PMI index expected unchanged from March at 55.7.
* March New home sales expected to fall back from Feb's 7-year high, show a decline of -4.5% to 515,000.
€ European stocks closed mixed as disappointing earnings reports as Kering SA fell over 5% after its Gucci brand reported a larger-than-expected drop in revenue and Heineken NV dropped over 2% after the world's third-biggest brewer reported a smaller-than-expected increase in sales.
The ECB on Wednesday raised its Emergence Lending Assistance (ELA) to the Greek central bank by another 1.5 billion euros just from last week to 75.5 billion euros. That suggests that Greek banks needed another 1.5 billion worth of new liquidity just in the past week, illustrating the extent of deposit withdrawals from Greek banks and general capital flight from Greece.
🇨🇳 China's Shanghai Stock Index rose to a fresh 7-year high on speculation that any decline in Chinese growth will be met with additional stimulus measures from the government.
🇯🇵 Japan's Nikkei 225 index reclaimed the psychologically-important 20,000 mark to clinch a new 15-year late Wednesday, marking its first successful attempt since April 10.
🇯🇵 The Japan Mar trade balance swung to a +229.3 billion yen surplus from a downward revised -425.0 billion yen deficit in Feb, a larger surplus than expectations of 44.6 billion yen and the biggest in 3-1/2 years.
Crude oil lower as EIA reported that U.S. crude stockpiles rose by 5.3 million barrels last week, higher than the 2.9-million-barrel build expected by analysts in a Reuters survey, to reach a record 489 million barrels.
FCPO eased after an erratic trading. Losses due to lower crude mineral oil and strong Ringgit. Generally, short term outlook is positive. Exports are improving while current stocks are relatively low. India imports are expected to increase after poor monsoon.
Ringgit Malaysia strengthen against US dollar as renewed buying interest from the local unit after CPI data meet expectations.
Malaysia's March CPI up 0.9% on year, meeting expectations, mainly due costlier alcoholic beverages, healthcare, restaurants and food, official data released Wednesday showed.
Moody's has assigned definitive A3 senior unsecured ratings to the U.S. Dollar trust certificates (Sukuk) issued by Malaysia Sovereign Sukuk Berhad.
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