Dollar heads for biggest monthly loss since 2010 ahead of Powell speech

 The dollar eased from a one-week high on Wednesday ahead of a speech by Federal Reserve Chair Jerome Powell, while optimism over a possible loosening in China's COVID restrictions set it on course for its biggest monthly loss in over 20 years.

The euro was one of the better performers, rising by as much as 0.3% ahead of euro zone inflation data that could show the first deceleration since June last year.

Harmonised consumer inflation is expected to have risen by 10.4% in November, down from October's final reading of 10.6%. It's still more than five times the European Central Bank's target rate. But after almost two years of near-relentless acceleration in inflation, markets could welcome any sign that the worst may be over.

European assets got a lift on Tuesday after inflation in Spain and a number of major German states cooled.

"The main focus is set to be on today’s flash CPI from the EU, which could set the scene as to whether we get 50 basis points or 75 bps when the ECB meets in just over two weeks’ time," CMC Markets chief markets strategist Michael Hewson said.

"There is increasing evidence that we might be getting close to peak inflation if the direction of travel of commodity prices over the past few months is any guide."

The euro was last up 0.2% at $1.0348, lifting off a one-week low earlier on Wednesday at $1.0319. Against sterling, it rose 0.1% to 86.46 pence.

The U.S. dollar index, which measures the performance of the greenback against six major currencies, fell 0.22% to 106.64, down from an overnight high of 106.90.

It has lost around 4.3% in November, making this its biggest one-month drop since June 2010, as investors have upped their bets that inflation has peaked and the Fed will soon signal a shift to a softer stance on monetary policy.

Powell will deliver a speech to the Brookings Institution in Washington at 1830 GMT on the economic outlook and the labour market, while private-sector employment data for November is due at 1315 GMT.

Markets show investors are attaching a probability of 63.5% odds that the Fed raises interest rates by just half a point on Dec. 14, and a 36.5% chance of another 75 basis point hike.

New York Fed President John Williams said on Monday that the central bank needs to press forward with rate rises, and St. Louis Fed President James Bullard said there is still "a ways to go" for policy tightening.

"The underlying message is that the Fed is not happy with where inflation and employment are at the moment," Bart Wakabayashi, branch manager at State Street (NYSE:STT) in Tokyo, said.

"Powell will continue to err on the side of hawkishness at this point in time."

The dollar edged up 0.1% against the yen to 138.75 yen, as the pair continued to consolidate following a bounce from a three-month low of 137.50 on Monday.

Sterling was flat at $1.1962.

Meanwhile, in China, data showed manufacturing came in weaker than expected, as the government's zero-COVID policies continue to undermine economic activity.

The offshore yuan gained ground against the dollar, which eased by 0.1% to 7.1483.

Chinese health officials said on Tuesday they will speed up COVID-19 vaccinations for the elderly, aiming to overcome a stumbling block in efforts to ease unpopular "zero-COVID" curbs, which had sparked vigorous protests in recent days.

"Overall, it appears that China is readying to move from zero‑COVID to living with COVID," Kim Mundy, a strategist at Commonwealth Bank of Australia (OTC:CMWAY), wrote in a client note.

What Is A Good Stock To Buy In Malaysia And Singapore?

 

 

The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) have collaborated to make a stock market transaction interface between Bursa Malaysia (BM) and the Singapore Exchange (SGX) by the end of 2018.

This trading interface has made it easier and less expensive for investors to acquire and negotiate shares traded on each other's stock exchanges. Such collaboration will primarily help retail investors. With the KLSE stock tips and Bursa Malaysia stock tips, traders can transact shares and gain profits.

Let's now understand what are some of the good stocks to buy in Malaysia and Singapore.

Top Glove Corporation Bhd

Top Glove Corporation Bhd. is traded on the main boards of the Bursa Malaysia Stock Exchange and the Singapore Exchange.

It is also a constituent stock of:

1. The FTSE Bursa Malaysia Mid 70 Index
2. The FBM Top 100 Index
3. The FBM Emas Index
4. The FBM Emas Syariah Index
5. The FTSE Bursa Malaysia Hijrah Shariah Index
6. The FTSE4Good Bursa Malaysia Index.

Top Glove is the world's largest rubber glove maker, with a well-established corporate culture and a sound business strategy of manufacturing consistently high-quality, low-cost gloves.

Top Glove Corporation Bhd's secondary listing in Singapore:

1. Achieved a 325 % total return in 2020
2. Is listed as one of the top 50 stocks by transaction activity
3. Has an average of S$6.1 million transactions daily

Riverstone Holdings

Riverstone Holdings Ltd. is an investment firm that manufactures and sells healthcare and room cleaning products.

1. For 3Q 2020, revenue increased by 92.0 % YoY to RM482.3 million.
2. Annual glove production capacity will increase from 1.5 billion to 10.5 billion pieces.
3. One of the most popular and active stocks traded during the day, ranked by value and volume

GSH Corporation

GSH Corporation Limited is an investment holding company that provides management services to its subsidiaries. Hospitality, Property, Trading, and Others are the company's business segments.

1.  Net profit increased to 14.7% for 1H 2020 by S$65.8 million.
2. New trading segment planned for a fully integrated frozen foods supply chain ranging from purchasing, and logistics, to financing via major Chinese ports.
3. GSH insiders believe the business has merit because of its high insider ownership and encouraging transactions.

Group Sheng Siong

Sheng Siong is a one-stop online shopping destination. It is run by Sheng Siong Supermarket Pte Ltd, one of Singapore's most well-known supermarket conglomerates.

1. According to the most recent financial statements, it has a net income of S$132.38 million, representing an 83.7 % increase.
2. They intend to open new locations throughout the year.
3. Insiders own a significant portion of Sheng Siong Group Ltd, totaling S$879 million in shares, demonstrating a high level of alignment with shareholders.
   
   
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The results of the Fed's 2-day interest rate meeting ended late last night

  Investors correctly predicted the Fed's 0.75 percentage point rate hike and initially read the Fed's statement as dovish about the fact that Fed officials have begun to argue and signal a slowing pace. rate hike again, sending all bullish markets higher.

 But, those gains were reversed when Fed Chairman Jerome Powell said it was "too early" to talk about a pause in rate hikes and that interest rates could end up higher than previously announced.

 Powell dismissed the idea that the Fed might pause on rate hikes soon, though he said he expected a discussion at the next meeting or two about slowing the pace of tightening.

 He also reiterated that it may take determination and patience to reduce inflation.

Dollar Edges Lower; Traders Look for Pivot at Fed Meeting

 The U.S. dollar weakened in early European trade Tuesday as traders weighed the likelihood that the Federal Reserve signals a less aggressive interest rate tightening path at the end of its latest policy meeting on Wednesday. At 03:55 ET (07:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% lower at 110.993, retreating from a two-decade high of 114.78 at the end of September. The Fed is widely expected to deliver another 75 basis point rate hike after the conclusion of its latest policy-setting meeting on Wednesday, its fourth such increase in a row. However, the size of December’s hike is open to debate, with expectations growing that signs of economic weakness will persuade the Fed policymakers to agree to a smaller rate hike, probably of 50 basis points. The Bank of Canada unexpectedly slowed its pace of rate increases last week, lifting its benchmark overnight lending rate by 50 basis points, instead of the three-quarter move expected, while the Reserve Bank of Australia raised interest rates by just 25 basis points earlier Tuesday, even as it hiked its inflation forecast and trimmed its GDP outlook. AUD/USD rose 0.3% to 0.6420, paring earlier sharp gains amid concerns the central bank was growing lax on inflation after recent data showed that Australian inflation grew by a more than expected 7.3% to a 32-year high in the third quarter. EUR/USD rose 0.3% to 0.9916, with pressure remaining on the European Central Bank to continue raising interest rates, following last week’s 75 basis points hike, after Monday’s data showed Eurozone inflation came in at 10.7% in October, a new record. However, “with global growth under pressure from tighter rates and a misfiring Chinese economy, we think the Eurozone and the euro will continue to struggle. That is why last Thursday's high of 1.0089 in EUR/USD could have been significant,” said analysts at ING, in a note. “A close back under the 0.9900/9910 area this week would support our preferred view of EUR/USD retesting the lows near 0.95.” GBP/USD rose 0.3% to 1.1507, ahead of Thursday’s Bank of England meeting, which is widely expected to result in another increase in interest rates with inflation running at double digits. USD/JPY fell 0.5% to 147.97, after Japanese authorities confirmed that the country spent a record $42.8 billion on currency intervention this month to prop up the yen. Finance Minister Shunichi Suzuki stated Tuesday, again, that authorities are closely watching market moves and will not tolerate "excessive currency moves driven by speculative trading". USD/CNY fell 0.2% to 7.2889, retreating from a near 15-year high, helped by a general improvement in risk sentiment, even as the central bank fixed the official guidance rate above 7.2 for the first time since the global financial crisis of 2008.

Top 5 Best Exit Strategies !

Investors often commit a mistake while exiting from the trade. They do know when to enter but miserably fail to get away with a margin. So what are the best exit strategies? Here are some highlighted which might bring fortune to you:

• The moment when number of buy reports is high & media shows only the positive side about a company, it's time to sell. Sometimes companies invest huge on their branding and marketing programs to garnish the fund from investors but it's just a trap. The possibility of downfall becomes stronger at this moment and if it's not now it can be too late to empty your basket.

• It has been observed, stocks having the best performance for a while, may most certainly fall in the near future and hence it's a sign to exit wisely. A stock that has moved up already will eventually fall - Law of regression to mean enforced !

• The increasing risk of debt is another top indicator when it's time to exit. A company with high debt rate ratio will underperform soon. Higher the debt, higher the possibility of breakdown so sense this situation and be wise enough.

• Waiting for too long towards recovery may cost you huge so make a right decision to dump the stock at the right time. Sometimes Investors keep a hope of recovery until it's vanished completely but it's important to understand, there are several stocks listed on exchange and opportunities are huge.

• Last but not the least, Stop loss orders are another good exit strategy that can be used very effectively. The automatic closure to trade position not only facilitates when market is choppy but also minimizes the loss.

• 
  

10 Tips to Improve Trading in the KLSE

Tip #1. Analyzing Risk Patterns

Risk bearing is a very crucial part of KLSE trading. Every trader should analyze potential risks through technological and expert help.

Tip #2. Learn the Market Rules

Before entering the battleground, you should first make yourself aware of all the rules. Similarly, you should carefully review the rules of KLSE trading for a better understanding.

Tip #3. Test Your Plan

Before risking your money, you can use demo accounts readily available through brokers. This will help you to understand how well your plan will do.

Tip #4. Study the economic trends

The economic condition of the market cannot be ignored. This makes up for the most crucial pointer because your moves would be dependent on them.

Tip #5. Have a Control of Trading Capital

Veteran traders tend to have control of their trading capital, and they know when to hold and wait for the market to turn in their favor or to sell out and prevent a loss. This is important to learn.

Tip #6. Know the Entry and Exit Points

This is closely related to the last point. A vivid understanding of the market and the right time to begin or close an account is vital.

Tip #7. Keep the Emotions Aside

A successful trader trades mindfully and not in a rush of emotions. You must keep all the emotional connections aside and make apt trade decisions.

Tip #8. Know the type of trader you are:

As much as it is crucial to understand the market you are trading in, it is also essential to know if you are a short-term volume trader or a slow long-term trader.

Tip #9. Maintain an excellent risk-reward ratio

You need to have a clear understanding of what you can risk. For example, setting a risk ratio of 1:3 means that you are risking one unit for every three units of profit.

Tip #10. Get expert help

Nothing can beat the experts of the trading industry and their trading solutions. Thoughtful and experienced traders can help you understand the market’s dynamics and coping mechanisms.

These are a few essential tips that will help you trade efficiently and profitably in the KLSE market.
At The Learning Art, we facilitate expert advisory solutions that help young traders get the best recommendations to succeed in the world of trading. We have Forex and AI-powered trading technology for young traders. For any queries, connect now! 
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OPEC+ oil output cut ahead of winter fans inflation concerns

 Global oil supply is set to tighten, intensifying concerns over soaring inflation after the OPEC+ group of nations announced its largest supply cut since 2020 ahead of European Union embargoes on Russian energy.

The move has widened a diplomatic rift between the Saudi-backed bloc and Western nations, which worry higher energy prices will hurt the fragile global economy and hinder efforts to deprive Moscow of oil revenue following Russia's invasion of Ukraine.

Global crude futures jumped this week, returning to three-week highs, after the Organization of the Petroleum Exporting Countries and their allies, including Russia, on Wednesday agreed to slash output by 2 million barrels per day just ahead of peak winter season.

This is likely to drive spot prices higher, particularly for Middle East oil, which meets about two-third of Asia's demand, industry participants said, adding to inflation concerns as governments from Japan to India fight rising costs of living while Europe is expected to burn more oil to replace Russian gas this winter.

"We are concerned about a resurgence in international oil prices, which have shown some signs of calming down since the second quarter," a spokesperson at SK Energy, South Korea's largest refiner, told Reuters.

Another South Korean refining source said the supply cut could drive prices back to levels seen in the second quarter.

South Korea, Asia's fourth-largest economy and a manufacturing powerhouse, has seen costs skyrocket due to the surging commodity prices.

Brent hit $139.13 a barrel in March, the highest since 2008, after the Ukraine war sparked fears of Russian oil supply loss. [O/R]

ACTUAL CUTS

Saudi Energy Minister Abdulaziz bin Salman said the real supply cut would be about 1 million to 1.1 million bpd, a response to rising global interest rates and a weakening world economy.

That move triggered a sharp response from Washington, which criticised the OPEC+ deal as shortsighted. The White House said President Joe Biden would continue to assess whether to release further strategic oil stocks to lower prices.

"Saudi, UAE (the United Arab Emirates) and Kuwait are likely to take up most of the burden of cuts," said Tilak Doshi, managing director of Doshi Consulting, who was previously with Saudi Aramco (TADAWUL:2222).

"It's a slap on Biden administration's face by OPEC+," he said, adding that ties between Russia and Saudi seem increasingly tight.

While the SK Energy spokesperson expects U.S. reserves release to accelerate ahead of the U.S. midterm elections in November, RBC Capital analysts said follow-on sales would likely be more incremental.

"We are unlikely to see another blockbuster release in the near term," the bank added.

The OPEC+ cuts compound supply concerns as European Union sanctions on Russian crude and oil products take effect in December and February, respectively, prompting Morgan Stanley (NYSE:MS) to raise oil price forecasts.

"We hope OPEC+ will play a central role in balancing supply and demand in the run-up to the winter demand season," said Shunichi Kito, president of the Petroleum Association of Japan (PAJ).

Industry participants estimate the loss of Russian crude at between 1 and 2 million bpd, depending on how Moscow reacts to the G7's price cap on Russian oil. That policy is aimed at ensuring Russian oil continues flowing to emerging economies but at lower prices to reduce Moscow's revenues.

"The market is still underpricing the actual loss," said a Singapore-based crude oil trader who declined to be named due to company policy.

The move by OPEC+ prompted warnings from oil importing emerging markets, some of which have become particularly vulnerable to price shocks amid recent global supply snags.

Sri Lanka is battling its worst economic crisis since independence from Britain in 1948, with a plunge in its currency, runaway inflation and an acute dollar shortage to pay for essential imports of food, fuel and medicine.

President Ranil Wickremesinghe warned Sri Lanka will have to pay even more for fuel as richer countries stock up for their own needs.

"This is not just an issue faced by us but several other South Asian countries," he told parliament on Thursday. "Global inflation is going to hit us all next year."