All eyes are on centre banks’ meeting this week with BOJ and FOMC are making monetary policy statements on this Wednesday and Thursday respectively.

All eyes are on centre banks’ meeting this week with BOJ and FOMC are making monetary policy statements on this Wednesday and Thursday respectively.

Any negative surprises (like a hawkish tone) from the centre bankers could have a negative impact on the markets. However, we also worry that market may react counterintuitively (negatively) on any dovish tone/actions by the centre bankers. This could signal doubt on monetary easing or market is going risk-off.

KLCI’s trend turned into a short-term downtrend unexpectedly and abruptly as global investors selling higher-yielding asset and emerging Asian currencies weakened.