The Malaysian market may get the much-needed boost from external factors this week after US stocks closed at the year's high, but the gains could be capped by the weaker set of earnings last week.
US stocks ended the week at 2009 highs on Friday after a surprising rise in home sales and optimistic comments from Federal Reserve chief Ben Bernanke reassured investors about the prospects for an economic recovery.
According to Reuters, Wall Street got more confirmation that the economy is on the mend with a report showing existing home sales in July rose 7.2% -- the fastest pace in nearly two years and a sign that housing is pulling out of a three-year slump.
On the home front, data due on Aug 25 is the statement from Bank Negara's Monetary Policy Meeting on its interest rates strategy. The inflation rate declined for the second consecutive month in July following the higher base effect in June last year when petrol prices were hiked.
On Aug 26, Bank Negara is scheduled to release the second quarter GDP data. Expectations are that the economy had entered into a recession in 2Q following the 6% contraction in 1Q.
The government is expecting GDP to shrink 4% to 5% this year. More importantly is the outlook from Bank Negara about the state of the economy.
No comments:
Post a Comment