Markets Overview

Position squaring ahead of the annual Federal ReserveMonetary Policy Symposium at Jackson Hole helped liftedthe USD against most currencies and limited the advance ofindustrial metals. Global financial markets are expected toremain in holding pattern ahead of key headline speechesby Federal Reserve Chair Janet Yellen and EuropeanCentral Bank(ECB) President Mario Draghi. While both arescheduled to speak on global financial growth and stability,market participants will be looking forward to any hints onchanges in monetary policy. In particular, more details onthe Federal Reserve’s Balance Sheet Reduction (BSR) andwhen the European Central Bank (ECB) will embark onasset purchase tapering.

    Thailand will be reporting July customs trade data (11 amSGT) with both export and import growth expected to keeppace with double-digit growth in June. July CPI for Singaporeand Malaysia are coming due this afternoon. In Singapore,the headline inflation is expected to edge higher to 0.7%y/y in July from 0.5% in June. Malaysia’s inflation rate isforecast to moderate to 3.4% y/y from 3.6% in June (1H17:4.1%). BNM reaffirmed last week that inflation trend isexpected to moderate further in 2H. Despite the strong GDPand expectations that full year growth will be above 4.8%,BNM did not send any clues on OPR direction. We think anOPR hike is unlikely this year. Following that, Taiwan’s Julyindustrial production (exp: 3.30% y/y; June: 3.14%) will beout at 4 pm.

    Hong Kong’s stock exchange delayed its morning tradingsession today due to Typhoon Hato and markets will beclosed for the day if the No 8 storm signal remains in force.

    Typhoon signal No 8