FKLI Related News (Tues, Apr 16)

Stocks tumbled as steep declines in gold and other commodity prices fueled a selloff after worse-than-expected data on Chinese and U.S. economic growth. The plunge on Monday began during Asian hours and spread around the globe. Late in the day, news of explosions at the site of the Boston Marathon added to market jitters. But for most of the day, attention was centered on the dive in gold prices. For the second straight session, gold plummeted, losing $140.40, or 9.4%, to settle at $1360.60 a troy ounce. The drop was the largest one-day percentage fall since February 1983. Traders reported talk of investors selling stocks to raise cash in response to losses on gold positions.

The Dow Jones Industrial Average sank 265.86 points, or 1.8%, to 14599.20. The Standard & Poor's 500-stock index slipped 36.49 points, or 2.3%, to 1552.36, and the Nasdaq Composite Index fell 78.46 points, or 2.4%, to 3216.49. Total stock-trading volume across all major U.S. exchanges was its highest this year, with 8.36 billion shares changing hands, the most since Dec. 21. Declines in commodity-linked sectors far outpaced losses in other categories on Monday. Shares in the materials and energy sectors both declined 3.9%. Mining company Freeport-McMoRan Copper & Gold FCX -8.30%was the biggest decliner in the S&P 500, shedding $2.65, or 8.3%, to $29.27.

The selloff began in Asia and spread around the globe, sparked by disappointing Chinese data. Above, traders at the Big Board on Monday. Helping kick off the selling was data showing China's economy expanded 7.7% in the first quarter. That fell short of expectations of 8%. "Commodities can't appreciate without China being strong," said Jeffrey Sica, chief investment officer and founder of SICA Wealth Management, which invests in gold. He said he was sitting on his positions but "wouldn't want to be among the first to try to call a bottom here." He said the corresponding selloff in stocks could be a sign that large investment funds are selling stockholdings to cover losses. "What's important to realize is how much gold is used as collateral," he said.

Crude oil also declined, with prices slumping 2.8%, to $88.71 a barrel. The dollar rose against the euro and fell against the yen. Meanwhile, demand rose for the haven 10-year Treasury note, pushing the yield down to 1.702%. Also weighing on stocks were two reports on the U.S. economy that came in worse than expected. The Federal Reserve Bank of New York reported that manufacturing barely expanded in the New York region this month, as the business-conditions index declined more than expected. Separately, home builders' confidence fell for the third straight month, on expectations of a rise.          [Wall Street Journal]

Stocks on Bursa Malaysia closed broadly lower yesterday, in quiet trading, amid weak regional sentiment with prices moving sideways as investors await the release of some corporate results. FKLI spot month contract opened lower this morning following concerns over slowing growth in China and the U.S. Today’s Support and Resistance for FKLI April contract is located around 1,680 and 1,700 respectively.

FCPO Related News (Mon, Apr 15)

[Malaysia April 1-15 Palm Oil Exports 648,275 Tons, down 4% on Month – Intertek]

Malaysian palm oil futures dropped to a near two-week low in choppy trade on Friday, with no clear guidance from overseas markets and investors worried a bird flu outbreak in China could crimp demand from the world's second largest edible oil buyer.  Crude palm oil futures on Malaysia’s derivatives exchange end lower, weighed by a ringgit which strengthened this week to a three-month high after the announcement of a general election. "A firmer ringgit hurts [palm oil] refining margins," says a trading executive at a Kuala Lumpur-based investment bank. Palm oil is unlikely to gain much because of increasing soy supply in South America and ample palm oil port stocks at major consumers China and India, market participants say.

Brokers tip near-term support at MYR2,300/ton. Benchmark June CPO ends 0.3% lower at MYR2,345/ton; CBOT May soyoil is 0.2% higher at 49.87 cents/lb in screen trade. Crude palm oil futures on Malaysia’s derivatives exchange end lower as investors book profits after failing to see follow-through buying interest. "Prices are under selling pressure as the demand offtake remains low as major consuming countries like China are well stocked," says a senior trader at a foreign trading house.

Today’s Support and Resistance for benchmark June contract is located around 2,300 and 2,350 respectively.

FKLI Related News (Mon, Apr 15)

NEW YORK, April 12 (Reuters) - U.S. stocks closed slightly lower on Friday, retreating from the previous session's record highs on a drop in financial shares, but major indexes had the biggest weekly gains since the first week of the year. Shares pared losses in the final hour of trading, with the Dow helped by a rally in Home Depot. For the week, the S&P 500 rose 2.3 percent while the Nasdaq rose 2.8 percent. It was the best weekly gain for both since the first week of the year. The Dow rose 2.1 percent.

Financial stocks were pressured on Friday by a pair of disappointing bank results and a delay in closing a large bank deal. Weak retail sales and consumer sentiment data, suggesting the economy lost momentum, also weighed on stocks. Telecom and healthcare, two defensive groups, were among the few S&P sectors in positive territory. On Thursday, the Dow and the S&P 500 closed at all-time highs. Both JPMorgan Chase & Co and Wells Fargo & Co were lower after reporting results, with JPMorgan hit by a decline in revenue and Wells Fargo by a reduction in home loans. The Dow Jones industrial average was down 0.08 points, or 0.00 percent, at 14,865.06.

Losses were offset in the Dow by Home Depot Inc, which jumped 2.4 percent to $73.62 after Jefferies & Co upgraded the stock on expectations of strong first-quarter same-store sales. Data showed retail sales fell 0.4 percent in March, while February's strong gain was revised down slightly. Consumer spending plays a key role in the U.S. economy, accounting for two-thirds of activity. Another report showed consumer sentiment fell to a nine-month low in early April amid gloom about the long-term health prospects for the U.S. economy. The advance in equities in recent months was partly buoyed by the Federal Reserve's economic stimulus efforts, and analysts are viewing the first-quarter earnings season as a test for whether those gains are justified by corporate performance.

Material and energy stocks also fell alongside a drop in oil and precious metal prices. Oil prices sank 2.8 percent to an eight-month low while gold hit its lowest since July 2011. Prices were hit by concerns over the global economic outlook and the impact it could have on demand. Major commodity markets fell sharply on Friday, with oil tumbling to a nine-month low and gold sinking more than 4 percent to break below $1,500 an ounce, as investors worried about a weak global economic outlook and a plan for Cyprus to sell gold reserves. Brent crude oil fell to a nine-month low near $101 a barrel on Friday as a broad investor sell-off in commodities triggered a fall as much as $3 a barrel, but the global oil benchmark pared losses in afternoon New York trade as bargain hunters emerged.  

About 58 percent of companies traded on the New York Stock Exchange closed lower while 57 percent of Nasdaq-listed shares closed in negative territory. Volume was light, with about 5.94 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.36 billion shares.

The overbought situation is expected to slow down Bursa Malaysia’s upward momentum this week, said Affin Investment Bank vice-president /head of retail research Dr Nazri Khan. He said the May 5 general election will continue to influence market sentiments. “The bullish sentiment is still strong, mostly due to pre-election rally and foreign investor fund inflow.”,  he told Bernama. FKLI spot month contract opened slightly lower this morning at 1,695 following Wall Street’s retreat from its record high on weak retail sales and disappointing bank results.

Today’s Support and Resistance for FKLI April contract is located around 1,690 and 1,710 respectively.

FCPO Related News (Thurs, Apr 11)

[ Malaysia April 1-10 Palm Oil Exports  462,276 Tons, up 5.4% on month – SGS]

Crude palm oil futures on Malaysia’s derivatives exchange end down, as refiners sold positions after the ringgit strengthened to 3.0180, the highest level since Jan 21. A firmer ringgit "is hurting refining margins" as ringgit-priced CPO, a key feedstock, becomes more expensive to palm oil processors, a physical market broker in Kuala Lumpur says. Earlier in the day, MPOB says end-March palm oil stockpiles dip 11% on month to 2.17 million tons, on the back of a 10% rise in exports to 1.54 million tons. Benchmark June CPO ends down 1% at MYR2,370/ton; CBOT May soyoil eases 0.1% to 49.92 cents/lb in screen trade.           [Dow Jones Newswire]

SINGAPORE, April 10 (Reuters) - Malaysian palm oil futures edged lower on Wednesday, weighed down by recent strength in the ringgit, although losses were limited after a report showed stocks dropped to their lowest in seven months as exports outpaced weak output growth. Prices were expected to rise after the midday break as the Malaysian Palm Oil Board (MPOB) reported a steep 10.9 percent drop in stocks to 2.17 million tonnes, far exceeding market expectations of a 3.8 percent drop. But the ringgit's recent rise on short-covering ahead of the upcoming election has made crude palm oil more expensive for overseas buyers and lowered refiners' margin, keeping some investors on the sidelines.

The currency hit a near 3-month high against the dollar on Wednesday after the government said the Southeast Asian nation will hold its general elections on May 5. "The market is facing selling pressure with the strengthening ringgit as it dampens refining margin," said a dealer with a foreign commodities brokerage in Malaysia. The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell 1 percent to close at 2,370 ringgit ($783) per tonne -- also the low for the day. Prices touched a high of 2,419 ringgit on Tuesday, a level last seen on March 28. Total traded volumes stood at 34,101 lots of 25 tonnes each, slightly lower than the average 35,000 lots seen so far this year. Technicals showed palm oil is biased to drop to 2,350 ringgit per tonne, as it did not break a resistance at 2,420 ringgit, said Reuters market analyst Wang Tao.

Exports of Malaysian palm oil products for April 1 to 10 inched up 3.5 percent to 456,440 tonnes, compared with 441,025 tonnes shipped during the same period last month, cargo surveyor Intertek Testing Services said on Wednesday. Palm oil stocks are now closer to the psychological 2-million-tonne level. Leading analyst Dorab Mistry has forecast prices could rise to 2,400 to 2,700 ringgit by the end of May as stockpiles fall below that level. In other markets, Brent crude futures steadied around $106 per barrel on Wednesday after China's total imports surged in March, suggesting that recovery in the world's No 2 oil consumer is gathering momentum. In vegetable oil markets, U.S. soyoil for May delivery edged 0.1 percent lower in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.3 percent higher.            [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,340 and 2,400 respectively

FKLI Related News (Thurs, Apr 11)

NEW YORK (Reuters) - Stocks climbed 1 percent on Wednesday, with both the Dow and S&P 500 ending at historic highs as cyclical shares led the way higher for a second straight day. The S&P 500 finally joined the new all-time intraday high club, surging past a record set on October 11, 2007. The index has struggled to breach the level of 1,576.09 for the past several weeks, but broke above it on Wednesday to rise as high as 1,589.07. The Dow also hit another intraday milestone, rising as high as 14,826.66. With the day's gains, major indexes are up about 10 percent for the year, but many investors viewed the strength in cyclicals - groups closely tied to the pace of economic growth - as a sign that the rally still has staying power.

The Dow Jones Transportation Average (.DJT), viewed as a leading indicator for the broader market, rose 1.8 percent. Tech was the day's strongest group, with the S&P technology sector index (.SPLRCT) up 1.8 percent. The sector also got a boost from Facebook Inc (FB.O), which jumped 3.7 percent to $27.57. The Dow Jones industrial average (.DJI) jumped 128.78 points, or 0.88 percent, to 14,802.24 at the close. The Standard & Poor's 500 Index (.SPX) climbed 19.12 points, or 1.22 percent, to 1,587.73. The Nasdaq Composite Index (.IXIC) shot up 59.40 points, or 1.83 percent, to close at 3,297.25. The day marked the best session for both the Dow and the S&P 500 since February 27, and the best for the Nasdaq since January 2. The Nasdaq climbed to a session high of 3,299.15, its highest since November 2000. The CBOE Volatility index (.VIX), a measure of investor anxiety, fell 3.7 percent. Stockton added that if the S&P 500 held above its old high, "the next target would be 1,780."

The Federal Reserve unexpectedly released the minutes from its most recent policy-setting meeting five hours early. The minutes showed a few policymakers expected to taper the pace of asset purchases by mid-year and end them later this year, while several others expected to slow the pace a bit later and halt the quantitative easing program by year-end. Accommodative monetary policy from the Fed has been credited with helping to boost equity prices, and uncertainty surrounding the minutes briefly hit indexes in the premarket session, though they subsequently recovered. "The only way quantitative easing will be tapered off is if the labor market shows noticeable improvement, and the most recent data doesn't show that," said Northern Trust's McDonald, referring to the March payroll report, which fell sharply short of expectations. "QE will only be taken away when we're in a self-sustaining recovery. We're not there yet, which points to the Fed continuing to stimulate the economy."

Stocks on Bursa Malaysia ended firmer yesterday with the benchmark FBM KLCI ended at a new all-time high, lifted by persistent buying in heavyweights. The previous all-time high was 1,694.16 recorded on Jan 7, 2013. The FBM KLCI rose 5.93 points or 0.35% to 1,696.2 after hovering between 1,687.91 and 1,697.51 throughout the day. FKLI spot month contract opened higher this morning following Dow and S&P’s record high close as Wall Street rallies. Today’s Support and Resistance for April contract is located around 1,690 and 1,710 respectively.

FCPO Related News (Wed, Apr 10)

[Malaysia April 1-10 Palm Oil Exports Up 3.5% on Month - ITS ]

Crude palm oil futures on Malaysia’s derivatives exchange end down as investors refrain from aggressive bets ahead of the March crop report and April 1-10 export estimates to be issued on Wednesday. Market chatter pins export demand at 400,000 tons-470,000 tons in the first 10 days of April, a trading executive at a Kuala Lumpur-based investment bank says. "[The] market eased during afternoon trade due partly to the strength in the ringgit to 3.0380 as refiners liquidated positions," a senior trading executive in Kuala Lumpur says.

A firmer ringgit makes CPO a more expensive feedstock for palm oil refiners and may further tighten refining margins. Market participants said last week March output probably remained flat at 1.29 million-1.30 million tons and inventories in the world’s no. 2 producer likely eased between 5%-9% to around 2.21 million tons-2.31 million tons.          [Dow Jones Newswire]

SINGAPORE, April 9 (Reuters) - Malaysian palm oil futures ended slightly lower after hitting a near two-week high on Tuesday as fears over the bird flu outbreak in China and its impact on soybean prices outweighed hopes for lower palm inventory in the Southeast Asian nation, the world's No.2 producer.

Industry regulator, the Malaysian Palm Oil Board (MPOB), will on Wednesday report stock levels for March, with a Reuters poll predicting a drop to 2.35 million tonnes from 2.44 million in February. "The rise in Dalian palm and soy and also the overnight gain in U.S. soy are helping the rally, while traders are also positioning ahead of MPOB data," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore. "But the rise may be capped due to the bird flu situation in China." Traders are keeping a close watch on the development of a new strain of bird flu in China, fearing that it could cut demand for soy used in animal feed in the world's top importer of the bean, although the World Health Organization said it was no cause for panic.

Soyoil is a close competitor of palm oil and a fall in soy prices could wean away demand from palm. The benchmark June contract on the Bursa Malaysia Derivatives Exchange closed 0.2 percent lower at 2,395 ringgit ($789) per tonne. Prices earlier touched a high of 2,419 ringgit, a level last seen on March 28. Total traded volumes stood at 29,311 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year. Technicals showed palm oil is expected to rise to 2,440 ringgit, as indicated by a high-low bottom and a Fibonacci retracement analysis, said Reuters market analyst Wang Tao.

Market participants are also looking out for Malaysian palm export data for the first 10 days of April, due on Wednesday. Shipments edged slightly higher for March, the first increase in four months, thanks to higher demand for refined products. In other markets, Brent crude oil rose above $105 per barrel on Tuesday, rallying from an eight-month low after China's inflation slowed, giving it room to keep monetary policy easy and support oil demand in the world's second-biggest consumer. In vegetable oil markets, U.S. soyoil for May delivery inched up 0.1 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.5 percent higher.          [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,382 and 2,419 respectively.

FKLI Related News (Wed, Apr 10)

NEW YORK (Reuters) - Stocks advanced on Tuesday, with the Dow closing at a record high on a rally in cyclical shares and as earnings season started to heat up. With the day's advance, the S&P 500 again neared its all-time intraday high of 1,576.09, recovering from steep losses last week, the index's worst of 2013. The return to near-record levels indicates that investors are again using market declines as buying opportunities. The top sectors of the day, technology and energy, are groups that are closely tied to the pace of economic growth.

An S&P index of energy shares (.SPNY) rose 0.8 percent, climbing alongside a rise of 0.9 percent in the price of U.S. crude oil, which was up on inflation data from China that reduced concerns about monetary tightening. The Dow Jones industrial average (.DJI) advanced 59.98 points, or 0.41 percent, to 14,673.46, a record closing high. The Standard & Poor's 500 Index (.SPX) gained 5.54 points, or 0.35 percent, to 1,568.61. The Nasdaq Composite Index (.IXIC) added 15.61 points, or 0.48 percent, to close at 3,237.86. The Dow also touched a record intraday high at 14,716.46. Stocks also got a boost from a promising start to the earnings season.

Share prices on Bursa Malaysia ended broadly firmer yesterday backed by last minute support for bluechips, dealers said. FKLI spot month contract opened at 1,684 this morning. 

Today’s Support and Resistance for April contract is located around 1,675 and 1,700 respectively.