Overall Market Outlook (05th September 2015)

Crude Oil prices remained bearish as US reported a rise in US crude stocks by 4.7 million barrels in the week, the biggest one-week rise since April.

As the fundamental for crude oil is still weak, the price is expected to go down further for last quarter of 2015.

DJIA

A sharp fall in DJIA yesterday mainly due to the uncertainties of the rate increase by Fed. Investors remained concern on the outlook of interest rates after US job data had been reported.

US unemployment rate fells to seven year low which is a good news, however, the nonform payrolls drops significantly.




From my view of market outlook as at today, Fed is unlikely to increase their rates due to the disappointing nonfarm payroll data which is expected to increase more. This shows that US itself is "not ready" for the rate increase by Fed in September & it would leads to a negative impact on US's economy. Another point that Fed is unlikely to increase rate is due to the rapid slowing down of China's economy.

Meanwhile, Malaysia reported a good news yesterday that it's foreign reserves increases slightly from USD 94.5 to USD 94.7. It is reported that the reserves are sufficient to finance 7.4 months of retained imports, and are 1.0 times the short term external debt. Another good news is that the export data for July increased at about 3.5%, which is better than forecast 3.2 %, mainly due to the weaker commodity price & softening of MYR. 

However, MYR hits as high as RM 4.31 against USD as at today, the depreciation of MYR is still the main factor that leads to continuous recession of Malaysia's economy.


Feel free to comment :)