Bank Negara Malaysia

Wednesday’s Bounce in U.S. Equities Appears Shortlived

September 10, 2020

Risk aversion is back in vogue. Share prices overnight plunged 5.0% in Indonesia and fell by 0.6% in Hong Kong and China. While India and Japan saw advances, stocks in Europe are down 0.6% in the U.K., 0.5% in Switzerland, and 0.2% in France. U.S. futures are also lower. The price of WTI oil fell […] More

U.S. Covid Data Continues to Draw Close Scrutiny from Financial Markets

July 8, 2020

The number of new U.S. Covid-19 cases identified in the past 24 hours once again surpassed 55,000, and there have been about 1000 related deaths, which is twice the number in the prior day. A number of Fed officials have recently pointed to this worrying development as perhaps foreshadowing a leveling off of economic recovery […] More

Central Bank of Malaysia Cuts Interest Rate

March 3, 2020

Bank Negara Malaysia reduced its overnight policy rate (OPR) by 25 basis points to 2.5%, its lowest level since July 2010. This was the second cut of 2020 and brings the cumulative reduction since May 2019 to 75 basis points. Today’s move may not be the final gesture according to a released statement: “The reduction […] More

Markets Looking for Action, Not Words, as Virus Spreads

March 3, 2020

Share prices had rallied sharply on Monday amid hopes for an appropriately forceful policy response to counteract the drag from the spreading covid-19 pandemic. The OCED is warning that global growth this year will slow to an 11-year low even if the virus impact is comparatively short-lived and that growth could be as low as […] More

Unexpected Central Bank Rate Cut in Malaysia

January 22, 2020

Bank Negara Malaysia became the third major central bank within a week to cut its key interest rate following moves last Thursday by the South African Reserve Bank and the Central Bank of the Republic of Turkey. BNM’s key interest rate was cut 25 basis points to 2.75%, its lowest level in almost nine years. […] More

Stronger Pound and a Central Bank Rate Cut in Malaysia

January 22, 2020

The dollar declined 0.7% against sterling but is narrowly mixed against other major currencies today. Stronger-than-expected British labor statistics released yesterday seemingly reduce the likelihood of further monetary stimulus by the Bank of England. Today’s batch of U.K. economic data releases produced a 5-month high in the orders component of the monthly CBI industrial trends […] More

Higher Bond Yields

November 5, 2019

Ten-year sovereign debt yields advanced by another five basis points overnight in Japan and the United States, by 3 bps in Germany and 1 basis point in Great Britain. The dollar fell 0.4% against the Chinese currency, edging back marginally under 7.0 yuan per dollar. Elsewhere, the dollar advanced 0.4% against the Swiss franc and […] More

Markets React to ECB Stimulus, U.S. CPI Data, and Continuing Hopes on Trade Talks

September 12, 2019

Policymakers at the European Central Bank as expected cut the deposit rate by 10 basis points to minus 0.50%, announced an open-ended asset purchase program to start in November at EUR 20 billion per month, said targeted LTRO operations will carry the average deposit rate, and introduced a a 2-tiered system of reserve remuneration in […] More

Dollar and Sovereign Debt Yields Up, but Equities Mostly Down

March 5, 2019

Overnight gains in the dollar amount to 0.6% versus sterling, 0.5% relative to the kiwi, 0.4% vis-a-vis the loonie, and 0.3% against the euro, Swiss Franc and Australian dollar. Ten-year sovereign debt yields climbed two basis points in Germany and the United States and a basis point in Japan. Stock markets fell 0.7% in Indonesia, […] More

Anxious Times for Investors

January 24, 2019

Investors continue to face three big uncertainties: the U.S. government shutdown, the fast-approaching Brexit deadline, and the failure so far of U.S. and Chinese trade negotiators to reach a mutually satisfying agreement. Planned senate votes on the border wall and shutdown are not likely to pass. The on-again, off-again scheduled state of the union address […] More

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