FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price. Try get 5-7 points profit and put a stop 5 points away from your entry point. Close your position by the end of the day.
As for FCPO, Market rose further yesterday to its highest level since 7 April. Buying was encouraged by continued gains in CBT soyoil, China Dalian futures, and crude mineral oil. Weaker ringgit, which lost about 0.5 pct vs USD, was also supportive. Technical buying as prices rose above 2200 added gains. Prices were 16 higher to unchanged in the morning and rose to 35 higher in the afternoon.
Sentiment continued to be boosted by the very good 1-10 May exports and strength in CBT soyoil inspite of the bumper South American soyabean crop. Prospect of continuing strong demand from China remains after cutting interest rates. There are also reports of El Nino weather appearing in the coming months which will disrupt production of oilseeds globally. However, existing fundamentals are not bullish with the likelihood of increasing stocks and production in the coming months.
Technical view - the break above 2200 is positive. Prices may move to 2270. Trend up ; RSI 60.47 ; stochastic overbought ; support 2200 / 2160 / 2110 / 2070 ; resistance 2250 / 2270 / 2320.
Ringgit ~ 3.6150 / 3.6180 vs USD.
In other news...
€ European stocks were down >1% as a surge in global government bond yields undercuts stocks. The 10-year T-note yield rose 8 bp to a 5-1/2 month high of 2.35%, Germany's 10-year bund yield climbed 10 bp to 0.715%, and Japan's 10-year bond yield jumped 6 bp to a 2-month high of 0.45%.
🇺🇸 U.S. stocks closed mildly lower on Tuesday, recovering from sharp morning losses as investors found some relief from a slight recovery in bonds. The benchmark 10-year Treasury bond yield traded near 2.26% after touching a 6-month high of 2.366%.
📝 Stocks recovered some of their losses on increased M&A activity after Verizon said it would buy AOL in a deal valued at $4.4 billion. Verizon shares slipped 0.4%, while those of AOL surged 19%.
📝 Greece made its 750 million-euro payment due to the IMF today and after Dutch Finance Minister Dijsselbloem, leader of the Eurozone finance ministers, said that "we are making faster progress" in Greece's debt negotiations.
🇯🇵 The Japan leading index CI rose +0.7 to 105.5, right on expectations and the highest in 6 months.
🇳🇿 Australia's S&P ASX 200 index finished in the black for the first time in a week, ahead of the nation's annual federal budgetdue later in the day, which markets expect to show a deficit of over 40 billion Australian dollars ($31.5 billion).
🇨🇳 Today, China will release several pieces of April economic data, including fixed assets investment, industrial output and retail sales.
🇨🇳 China may relinquish its new status as the world's biggest oil importer back to US in the coming months as demand from refineries slows. The country bought about 7.4million barrels a day of crude from overseas in April, overtaking US imports of about 7.3 million.
⛽ Brent crude futures rose above $66 a barrel on Tuesday as a weaker dollar and the Yemen conflict helped lift prices. While U.S. Crude oil settled up 2.5% at $60.75 on OPEC's forecast for increased demand. The rise came despite Goldman Sachs' morning note that said the rally in oil prices was premature and itself preventing a decrease in oversupply.
👑 Gold rose up to 1% as the dollar and European shares suffered from a sell-off in global bond markets, although higher real yields kept prices under $1,200 an ounce. Now, $1,193.1.
🌱 Fundamentally speaking, the soybean market faced the most bearishly-construed data today with the 2015/16 U.S. balance sheet seeing swelling new crop supply expectations and dampening export demand. The combination of the two prompted heavy selling in the soybean complex.
🌴 FCPO closed RM2,224, highest level since 7 April. Buying was encourage by continued gain in Soyoil, China Dalian Futures and crude mineral oil. Sentiment also boosted by good export data. Price break above RM2,200 is positive from the technical view.
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