As for FCPO, market rebounded from big losses yesterday to close sharply higher today. Buying was led by technical correction from the oversold situation indicated in the stochastic and ideas that erosion yesterday was overdone. Steadier CBT soyoil and China Dalian futures also underpinned sentiment. Late rumours of good 1-10 July exports were also supportive. Prices were 7 to 18 higher in the morning and rose to 42 higher in the afternoon.
Rumours of 1-10 July exports to be reported by cargo surveyors tomorrow varied substantially. However, the numbers may not have much impact since market eroded sharply the past few days on outside factors, ie. plunging China stock market, Greece financial crisis, weak crude mineral oil, etc. Some support is likely ahead of the MPOB June data which is expected to report lower stocks and production.
Technical view - prices pulled back from the oversold stochastic to partially fill the big gap left on Wednesday. Trend remains negative. Trend down ; RSI 41.79 ; stochastic oversold ; support 2130 / 2070 / 2000 ; resistance 2205 / 2250 / 2285 / 2300.
In other news..
The IMF cut its global 2015 GDP forecast to 3.3% from a 3.5% estimate in Apr and also lowered its U.S. 2015 GDP estimate to 2.5% from a 3.1% estimate in Apr. The IMF said that risks to the world recovery remain “tilted to the downside” due to financial-market turbulence from China and Greece.
🇺🇸 U.S. Stocks followed global markets sharply higher in early trading, with the Dow industrials rising as much as 249 points, or 1.4%. But shares pared their gains to end modestly higher as the unexpected +15,000 increase in U.S. weekly jobless claims ( expectation -6,000) and the IMF's cut in its global 2015 forecast.
* Dow +33
* S&P +4
* Nasdaq +12
* Dow +33
* S&P +4
* Nasdaq +12
€ European equities moved sharply higher on the hope that Greece will submit concrete proposals to creditors later Thursday. As expected, the BOE at the conclusion of today's policy meeting kept its benchmark interest rate at 0.50% and maintained its asset purchase target at 375 billion pounds.
📝 A top Puerto Rico finance official is set to meet on July 13 with bondholders as the commonwealth pushes to restructure its $72 billion of debt.
🇨🇳 China's Shanghai Composite rebounded from a 3-3/4month low and closed up +5.76% after regulators late Wednesday banned major stockholders from selling their shares for at least 6 months. China has unveiled measures almost every day over the past week to shore up the stock market. Deleveraging of margin buying continues as traders unloaded a record 112 billion yuan ($18 billion) of shares bought with borrowed money on the Shanghai exchange Wednesday, the 13th straight day of declines.
🇨🇳 China Jun CPI rose +1.4% y/y, more than expectations of +1.3% y/y. Jun PPI fell -4.8% y/y, weaker than expectations of -4.6% y/y and matched Feb’s 5-1/2 year low.
⛽ U.S. oil prices climbed, snapping a five-session losing streak, as expectations of higher Iranian crude-oil exports receded.
⛽ Nuclear talks between Iran and six world powers are appear likely to drag on past Thursday’s midnight deadline. If a deal isn’t complete by Friday morning, Congress will get an extra month to review the deal.
👑 Gold pared gains after climbing from the prior session's four-month low as a recovery in Chinese shares cooled fears of a wider rout in the major bullion consumer while strength in the U.S. dollar kept a lid on gains. Now, &1,160.50 (+0.95)
🌴 FCPO (RM2,187) rebounded from big losses on Wednesday to close higher. Buying was led by technical correction from oversold situation indicated in the stochastic. Late rumour of good 1-10 July exports were also supportive. Also, some support is likely ahead of the MPOB June data which is expected to report lower stocks and production.
🌺 Ringgit closed higher against the U.S. Dollar as Bank Negara Malaysia intervened to prop up the local unit, dealers said.
Ringgit ~ 3.7960 / 3.7980 vs USD
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