MALAYSIA: Country Wrap: Malaysia Grapples with Chip Tariffs

The rally today for China's mainland bourses saw the CSI 300 hit new highs for 2025.  The release of weaker than expected PPI and ongoing weak CPI has seen investors speculating as to the possibility of further stimulatory measures to come from the government.  As the July Politburo meeting approaches investors are thinking that this could be a meeting where further measures are enacted to support growth in the second half of the year.  

• The Hang Seng was the long decliner of the China bourses, down -0.74% today whilst the CSI 300 gained +0.32%.  The Shanghai Comp and the Shenzhen Comp rose by +0.30%.
• The KOSPI continues its good run, rising today by +0.58%.
• The FTSE Malay KLCI fell -0.18% whilst the Jakarta Composite rallied +0.40%.  
• In Singapore the FTSE Straits Times was up +0.15% and the PSEi in the Philippines up +0.87%.  
• The NIFTY 50 is doing very little today flat at the open having gained by +0.24%

• RES 4: 1.1979 2.0% 10-dma envelope
• RES 3: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 2: 1.1851 High Sep 10 2021 
• RES 1: 1.1829 High Jul 01 and the bull trigger 
• PRICE: 1.1714 @ 06:10 BST Jul 9
• SUP 1: 1.1687 Low Jul7
• SUP 2: 1.1637 20-day EMA
• SUP 3: 1.1590 Low Jun 25  
• SUP 4: 1.1458 50-day EMA

The latest pullback in EURUSD appears corrective. The trend condition is unchanged, it remains bullish - moving average studies continue to highlight a dominant medium-term uptrend. Note too that corrections have been shallow. This also reinforces the trend condition. A resumption of gains would signal scope for a climb to 1.1851, the Sep 10 2021 high. Key short-term support to watch lies at 1.1646, the 20-day EMA.

• RES 4: 132.42 2.000 proj of the May 14 - 20 - 22 price swing
• RES 3: 131.95 High Jun 13 and the bull trigger   
• RES 2: 130.76/131.33 High Jul 4 / High Jun 20
• RES 1: 130.10/130.47 High Jul 8 / 50-day EMA
• PRICE: 129.65 @ 05:50 BST Jul 9
• SUP 1: 129.39 Low Jul 8
• SUP 2: 129.30 Low May 22
• SUP 3: 128.97 Low May 14 and a reversal trigger  
• SUP 4: 128.90 Low Apr 10 

Bund futures traded lower Tuesday, extending Monday’s sell-off. Support at 129.77, the Jul 3 low, has been cleared. The clear break confirms a resumption of the recent bearish theme and opens 129.30 next, the May 22 low. On the upside, resistance around the the 50-day EMA, at 130.47, has recently been pierced but for now, remains intact. A clear break of it is required to highlight a possible reversal.