Nikkei Malaysia March Manufacturing PMI 49.5 vs 49.4 in February

RHB FIC DAILY SNAPSHOT
03/04/2017 9:19
			1-Day	3-Mth	6-Mth
	31-Mar-17	30-Mar-17	Chg (%)	Avg	Avg
Commodities
Brent Crude May 17	52.83	52.96	-0.25	54.98	54.30
Brent Crude Jun 17	53.53	53.13	0.75	55.24	54.62
Brent Crude Jul 17	53.79	53.39	0.75	55.46	54.88
WTI Crude Oil	50.60	50.35	0.50	52.75	52.45
CPO Future May 17	2,646	2,659	-0.49	2,938	2,918
CPO Future Jun 17	2,581	2,595	-0.54	2,879	2,881
CPO Future Jul 17	2,537	2,549	-0.47	2,827	2,848
GOLD spot US$/Oz	1,249	1,243	0.54	1,221	1,218
DJ-UBS Metals Subindex	116.2	117.5	-1.15	115.4	111.3
DJ-UBS Agriculture Subindex	52.24	52.19	0.09	55.41	55.47
Forex
USD/MYR	4.426	4.421	0.11	4.446	4.386
GBP/USD	1.255	1.247	0.66	1.240	1.241
EUR/USD	1.065	1.067	-0.21	1.066	1.072
USD/JPY	111.4	111.9	-0.47	113.5	111.6
AUD/USD	0.763	0.764	-0.16	0.759	0.754
USD/SGD	1.397	1.398	-0.08	1.415	1.413
USD/HKD	7.771	7.770	0.02	7.761	7.759
USD/KRW	1,118	1,117	0.09	1,152	1,155
USD/CNY	6.887	6.889	-0.03	6.888	6.869
USD/THB	34.35	34.45	-0.28	35.09	35.25
USD/IDR	13,322	13,316	0.05	13,346	13,300
USD/PHP	50.20	50.16	0.07	50.01	49.57
USD/INR	64.85	64.92	-0.11	66.98	67.22
Equity Indices
FBM KLCI	1,740.1	1,749.3	-0.52	1,702.9	1,674.2
DJIA	20,663.2	20,728.5	-0.31	20,405.7	19,629.1
S&P 500	2,362.7	2,368.1	-0.23	2,325.9	2,254.8
NASDAQ	5,911.7	5,914.3	-0.04	5,736.3	5,521.4
			1-Day	3-Mth	6-Mth
Government Bonds	31-Mar-17	30-Mar-17	Chg (bps)	Avg	Avg
MGS 3/19 (3y)	3.53	3.50	3.20	3.38	3.38
MGS 03/22 (5y)	3.81	3.82	-0.50	3.82	3.82
MGS 08/23 (7y)	4.02	4.02	0.90	4.00	3.92
MGS 11/26 (10y)	4.13	4.18	-4.50	4.13	4.05
MGS 06/31 (15y)	4.51	4.50	0.80	4.56	4.46
MGS 03/46 (30y)	4.77	4.77	-0.30	4.79	4.74
UST 2YR	1.25	1.28	-2.78	1.23	1.12
UST 5YR	1.92	1.96	-4.28	1.94	1.78
UST 10YR	2.39	2.42	-3.23	2.44	2.29
UST30YR	3.01	3.03	-2.48	3.04	2.94
UK 2YR	0.13	0.11	1.70	0.13	0.14
UK 10YR	1.14	1.12	1.80	1.28	1.27
GE 2YR	-0.74	-0.74	-0.50	-0.77	-0.73
GE 10YR	0.33	0.33	-0.50	0.36	0.27
JGB 2YR	-0.19	-0.23	4.20	-0.23	-0.22
JGB 10YR	0.07	0.07	0.20	0.08	0.04
AU 2YR	1.75	1.76	-0.70	1.83	1.79
AU 10YR	2.70	2.69	1.10	2.76	2.66
SGS 2YR	1.32	1.26	6.80	1.24	1.15
SGS 10YR	2.25	2.19	5.17	2.32	2.24
HK 2YR	0.91	0.89	1.10	1.04	0.98
HK 10YR	1.67	1.65	1.80	1.85	1.58
SK 2YR	1.58	1.58	0.10	1.60	1.58
SK 10YR	2.19	2.18	0.30	2.17	2.04
CH 10YR	3.29	3.30	-0.30	3.32	3.12
TH 2YR	1.54	1.55	-1.20	1.53	1.54
TH 10YR	2.69	2.68	0.30	2.71	2.58
ID 2YR	6.69	6.62	7.00	6.98	7.06
ID 10YR	7.04	7.04	0.10	7.49	7.54
PH 2YR	0.00	0.00	0.00	1.02	1.31
PH 10YR	4.66	4.68	-1.30	4.42	4.34
IN 2YR	6.57	6.54	2.60	6.51	6.44
IN 10YR	6.68	6.70	-1.80	6.66	6.61
Daily Headlines
Malaysia
Nikkei Malaysia March Manufacturing PMI 49.5 vs 49.4 in February
Ringgit Halts Fall on Oil Prices, Fed’s Dudley
Global
USTs Underpinned Into Month-End as Real-Money Buying Supports
PBOC Tightening as Chinese Economy Steadies
Korea Rates: 3-Year Yields Rise; Foreigners’ Bond Demand Drops
Hedge Funds Stop Shorting Peso as Trump’s Impact Falters
Latin Pressure Points Mount in Markets as Political Woes Deepen

• Global: The dollar index was down 0.03% to 100.42 after US consumer spending fe

Key Highlights:

• Global: The dollar index was down 0.03% to 100.42 after US consumer spending fell to 96.9 m/m in March, below expectation of 97.6. Meanwhile EUR/USD slid 0.15% to US$1.0671 supported by expectations that the ECB is moving closer to tightening monetary policy. In the UK, GBP/USD rose 0.06% to 1.2542 after data released on the UK GDP economy showed a growth of 0.7% q/q for the fourth quarter in line with expectations. 

• Malaysia: The ringgit was 0.11% lower at 4.4255 despite crude oil WTI rising 0.02% to US$50.62 while Brent shed 0.41% to US$53.48 amid optimism that OPEC will extend its production cut deal beyond June. The 5-year MGS yield fell 0.10 point to 3.81, while the 10-year MGS yield rose by 0.10 point to 4.14. The 5-year CDS was 0.52 point higher  at 105.21

• Key Watch: (i) US manufacturing PMI for March is expected at 57 (Feb: 57.7); (ii) EU manufacturing PMI for March is expected at 56.2 (Feb: 55.4); (iii) Malaysia manufacturing PMI for March is expected at 49.8 (Feb: 49.4); (iv) Indonesia inflation rate for March is expected at 0.20 m/m (Feb: 0.23%); (v)Thailand CPI for March is expected at 1.30%y/y (Feb:1.44%)

• Technical Outlook: The RSI reading continued to stay high within the overbought zone suggesting the support level will be at 4.4123 while the narrowing positive gap in MACD sets the resistance level at 4.4388

We believe the Xi-Trump meeting could reignite tensions on trade and currency. We prefer to stay on t

GBL: Xi-Trump Defensive Play

Global Markets Daily by Saktiandi Supaat

FX Research

We believe the Xi-Trump meeting could reignite tensions on trade and currency. We prefer to stay on the defensive: USD may face temporary downside pressure vs. JPY and perhaps, CNH, KRW, TWD (currencies at risk of being named currency manipulators, and trade surplus with US) in the lead up to the meeting. But if meeting ended in amicable terms, USD strength could return. Bias remains to buy USDJPY on dips, looking for a move back towards 112, 114.50 levels. We also look for further downside ....