Latest news with #SPIAssetManagement
The Star
8 hours ago
- Business
- The Star
Ringgit closes slightly lower vs US$, stays defensive despite Fed concerns
KUALA LUMPUR: The ringgit slipped 0.01 per cent against the US dollar at the close, as the local note continued trading on the defensive today, which offered some technical comfort for the ringgit. At 6 pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the United States (US) Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. "Sticky core inflation, fueled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. "The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index, which continued to increase in June to 2.7 per cent from 2.4 per cent previously. "The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. "In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said. At the close, the ringgit was traded higher against a basket of major currencies. It strengthened against the British pound to 5.6786/6907 from yesterday's close of 5.7047/7107, improved against the Japanese yen to 2.8508/8569 compared with 2.8702/8734, and was up versus the euro at 4.9248/9352 versus 4.9539/9591. The local note also trended higher against ASEAN currencies. It traded higher vis-a-vis the Singapore dollar at 3.2999/3071 from 3.3095/3133 yesterday, inched up against the Indonesian rupiah to 260.3/260.9 from 260.6/261.0, and strengthened versus the Philippine peso to 7.43/7.45 from 7.47/7.49. It also gained against the Thai baht to 13.0301/0630 from 13.0784/0988. - Bernama
Malay Mail
13 hours ago
- Business
- Malay Mail
Ringgit eases to 4.24 against US dollar amid Fed rate uncertainty
KUALA LUMPUR, July 16 — The ringgit slipped 0.01 per cent against the US dollar at the close, as the local note continued trading on the defensive today, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the United States (US) Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fueled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index, which continued to increase in June to 2.7 per cent from 2.4 per cent previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said. At the close, the ringgit was traded higher against a basket of major currencies. It strengthened against the British pound to 5.6786/6907 from yesterday's close of 5.7047/7107, improved against the Japanese yen to 2.8508/8569 compared with 2.8702/8734, and was up versus the euro at 4.9248/9352 versus 4.9539/9591. The local note also trended higher against Asean currencies. It traded higher vis-a-vis the Singapore dollar at 3.2999/3071 from 3.3095/3133 yesterday, inched up against the Indonesian rupiah to 260.3/260.9 from 260.6/261.0, and strengthened versus the Philippine peso to 7.43/7.45 from 7.47/7.49. It also gained against the Thai baht to 13.0301/0630 from 13.0784/0988. — Bernama
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Markets shrug off Trump's tariff threat against EU
US shares initially dipped on Donald Trump's tariff threat but later rebounded, with the Nasdaq hitting a new record. (AP pic) NEW YORK : Major stock markets on Monday largely shrugged off US President Donald Trump's latest tariffs threat to hit the EU and Mexico with 30% levies. Analysts said investors viewed the warning as yet another negotiating ploy against America's trading partners rather than a genuine move – although lingering uncertainty weighed on oil prices. US shares initially dipped on Trump's threat – which is due to take effect at the start of August – but then pushed higher, with the Nasdaq edging to a fresh record. 'The market is betting that by Aug 1st these tariffs are not going to be implemented at these levels,' said Peter Cardillo of Spartan Capital Securities. 'And so the market continues to rally.' European indices finished largely down, but with no sign of panic selling. London's FTSE climbed. Many Asian markets closed lower, but not Shanghai and Hong Kong. Markets believe the latest threat of 30% tariffs on the EU, the United States' biggest trading partner, was 'Trump-style brinkmanship – sound and fury meant to shake down concessions before the Au 1 deadline,' explained Stephen Innes, managing partner at SPI Asset Management. 'Financial markets are acting like the 30% rate is a mere tactic from Donald Trump, rather than a reality,' agreed Kathleen Brooks, research director at XTB. Yet some, including Kim Heuacker, an associate consultant at Camarco, noted 'there remains the genuine risk that, to save face, he (Trump) may activate the high tariffs.' The European Union, stung by Trump's unexpected raising of the stakes amid trade negotiations, is looking at targeting €72 billion (US$84 billion) worth of US imports if talks with Washington fail, its trade chief, commissioner Maros Sefcovic, said. With Trump's threat being discounted, bandwidth was given to other news. Bitcoin struck a record high above US$123,000, fuelled by possible regulatory changes for crypto assets in the US. Attention was also focused on Trump on Monday vowing 'very severe tariffs' on Russia's trade partners if Moscow did not resolve its war in Ukraine within 50 days. Oil traders initially saw those sanctions constricting supply, and they pushed crude prices higher – before selling off under the cloud of a possible broader trade war that would depress global demand. Besides tariffs, markets are looking ahead to earnings from JPMorgan Chase, Bank of America and other banks that will offer updates on the state of US consumers and on the health of the companies' trading and investment businesses. Markets are also awaiting US government reports on consumer pricing and retail sales for June, which will inform expectations on the likelihood and timing of Federal Reserve interest rate changes.
News.com.au
a day ago
- Business
- News.com.au
Stocks diverge, as US inflation puts focus on Trump's tariffs
Global stock markets went in different directions on Tuesday, as an uptick in US inflation suggested President Donald Trump's tariffs could be beginning to feed into the American economy. New York was generally trading higher on the back of healthy results from major US banks and buoyant news in the tech sector. The S&P 500 and Nasdaq were up, though the Dow Jones was struggling. Most Asian indices rose but Europe's stock markets slipped into the red late in the day. The US consumer price index for June showed an acceleration to 2.7 percent from a year earlier, in line with economists' forecasts. "The CPI release showed some early signs of tariff pass-through but underlying inflation remains muted," said Stephen Innes, managing partner at SPI Asset Management. While US inflation remained relatively tame, analysts said businesses were working through stockpiles amassed in anticipation of Trump's duties and further price rises could be expected later this year. Since April, the United States has imposed a baseline 10-percent tariff on goods imported from almost all trading partners, with steeper levies on steel, aluminium and cars. Trump has threatened 30-percent tariffs on European Union and Mexican goods from August 1 if they do not cut trade deals. The US Federal Reserve, which has an inflation target of two percent, could cut rates in September -- but not if the tariffs also end up putting a brake on US economic growth. China, which has negotiated a US tariff truce, issued economic growth data that met expectations, largely thanks to an April-June export surge to get ahead of Trump's levies. But the US president on Monday warned of new tariffs of up to 100 percent on Russia's trading partners -- which include China -- if Moscow does not end its war on Ukraine within 50 days. Even though Russia is a major crude producer, oil prices dropped after Trump's announcement and continued lower on Tuesday. "Investors seem convinced that the 50-day window gives the US, Russia and Ukraine an opportunity to hammer out some kind of deal," said David Morrison, senior market analyst at Trade Nation. - OPEC forecast - OPEC said in its latest monthly market report it expected its production forecasts for this year and next to hold, despite uncertainties generated by the US tariffs. It forecast that oil demand would rise by 1.3 million barrels in 2025 and again in 2026. "Continued robust global economic growth is expected... despite ongoing US-centred trade challenges and geopolitical uncertainties," it said. In corporate news, US banks JPMorgan Chase and Wells Fargo posted better-than-expected second-quarter results. JPMorgan boss Jamie Dimon described the US economy as "resilient" while facing "significant risks", including over tariffs uncertainty. And tech darling Nvidia's share price jumped after it said US export restrictions will be eased to allow it to sell its H20 artificial intelligence chips to China. That gave fuel to the Nasdaq, which had closed on Monday on another record high. Bitcoin slid on likely profit-taking, after having hit a record high above $123,200 on Monday, thanks to optimism over possible regulatory changes for crypto assets in the United States. - Key figures at around 1345 GMT - New York - Dow: DOWN 0.3 percent at 44,329.45 points New York - S&P 500: UP 0.2 percent at 6,283.26 New York - Nasdaq Composite: UP 0.7 percent at 20,790.24 London - FTSE 100: DOWN 0.2 percent at 8,979.87 Paris - CAC 40: DOWN 0.2 percent at 7,791.87 Frankfurt - DAX: DOWN 0.1 percent at 24,134.73 Tokyo - Nikkei 225: UP 0.6 percent at 39,678.02 (close) Hong Kong - Hang Seng Index: UP 1.6 percent at 24,590.12 (close) Shanghai - Composite: DOWN 0.4 percent at 3,505.00 (close) Euro/dollar: DOWN at $1.1644 from $1.1670 Pound/dollar: DOWN at $1.3408 from $1.3428 Dollar/yen: UP at 148.55 yen from 147.77 yen Euro/pound: DOWN at 86.86 pence from 86.88 pence Brent North Sea Crude: DOWN 0.3 percent at $69.00 per barrel
The Star
a day ago
- Business
- The Star
Miti requires permit for US-made AI chip exports
KUALA LUMPUR: The Investment, Trade and Industry Ministry (Miti) has imposed an immediate requirement for a Strategic Trade Permit on all exports, transshipments and transits of high-performance artificial intelligence (AI) chips of US origin, as part of efforts to close regulatory gaps. Miti said the new measure falls under Section 12 of the Strategic Trade Act 2010 (STA 2010), known as the Catch-All Control provision. It mandates individuals or firm to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in restricted activities. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010,' Miti said in a statement yesterday. Miti said Malaysia takes a firm stance against any attempt to circumvent export controls or engage in illicit trade. Any individual or company found violating the STA 2010 or related laws will face strict legal action. 'While Malaysia supports investments and trade that align with international best practices and multilaterally agreed commitments, all entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,' it said. Miti reaffirmed its commitment to maintaining a safe, secure, transparent and rules-based trading environment, and said it will not tolerate misuse of Malaysia's jurisdiction for illicit trade activities. Commenting on the development, SPI Asset Management managing director Stephen Innes said the new export control does not directly hinder Malaysia's ongoing AI and data centre expansion efforts, which are driven by infrastructure investment, cloud partnerships and local talent. However, it does signal tighter regulatory oversight. 'If you want to play in the AI sandbox, you now need to watch your sourcing, disclosure and compliance trail more carefully,' he told Bernama. Innes said while multinational technology firms are likely to view this as a manageable hurdle, smaller local players or startups could face some challenges without the benefit of robust legal support. On the chip industry itself, he said Malaysia's core strength in testing and packaging means it may be spared the brunt of disruptions. 'This law forces the industry to mature quickly in terms of compliance infrastructure. The upside is that it may accelerate Malaysia's push toward more transparent, globally integrated standards,' he added. Meanwhile, economist Professor Geoffrey Williams said the changes in regulations showed a more cooperative approach from the tariff talks, which is a good sign. Williams said this indicated that both sides are listening to each other and responding quickly. 'This will deliver a much better chance of lowering the 25% reciprocal tariffs and is better than taking a belligerent stance. It is a closer win-win engagement,' he said. Williams said the United States has been concerned that AI chips are being sent to China through third countries in Asean, in breach of the US embargo. 'Therefore, getting better coordinated regulation across Asean is a positive response to address US concerns, and Malaysia is playing a key role in this,' he said, adding that this would have no significant effect on data centre and AI operations in Malaysia, except to restrict illicit activities.
