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 Nur Aisha Abd.Wahab
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 Borneo Post Online
 Biden plans to raise capital gain tax

Borneo Post Online (25/04/2021) –

Fundamental outlook

PRESIDENT Joe Biden reportedly plans to raise capital gain tax to 43.4 per cent. The market reacted on Thursday by falling while the Dow market closed 321 points lower.

US stock markets recovered on Friday in mixed sentiment of inflation and rising capital taxes. Big tech companies will be releasing the earnings this week and expect to hold the market on bullish trend.

European Central Bank confirmed that the monetary policy remained unchanged while maintaining the support of bonds purchase at 1.85 trillion euros until March 2022.

The Covid-19 cases and variants have broken out again on a global basis. Medical supplies companies have seen their prices rising in April.

Technical forecast

US dollar/Japanese yen fell last week due to weakening dollar. The market may be heading lower this week within the range of 107 to 108.50. Short-term bargain-hunting will likely emerge below 107 in case of a drawdown. Selling forces are expected to be strong on the topside.

Euro/US dollar closed at 1.21 on Friday. This week, we reckoned the trend is prone to climb higher to 1.22. The overall range is expected to be contained from 1.20 to 1.22 with strong buying interest emerging from the bottom. It will depend on the dollar’s strength to determine the direction of the euro in the coming weeks.

British pound/US dollar topped off 1.40 resistance last week as we predicted. We foresee the trend could be trading lower while contained from 1.37 to 1.39. Swing trading technique may be more suitable for managing the trend due to mixed activities.

WTI Crude prices traded from US$60 to US$64 per barrel in a narrow range. We retain our view on the trend outlook. However, be cautious if the trend breaks beyond either direction.

Trading interest has been diminishing over many weeks but we expect the attention will return once the price movement goes beyond our expected range.

Crude Palm Oil (FCPO) Futures on Bursa Derivatives climbed higher last week until some profit-taking activities ocurred on Friday. July Futures contract settled at RM3,927 per metric tonne on Friday. The market might do a quick correction earlier during the week at RM3,800 per metric tonne and recovered towards Friday. The overall range is expected from RM3,800 to RM4,100 per metric tonne. Moving above the aforementioned resistance will continue the bullish trend into May.

Gold prices failed to cross above US$1,800 per ounce level last week. The initial range is expected to move from US$1,760 to US$1,800 per ounce in case of a quick correction. However, we forecast a high chance of moving above the US$1,800 per ounce level and attempt US$1,820 per ounce before the end of April.

Silver prices declined from US$26.60 per ounce last week. The market is likely to trade sideways this week from US$25.50 to US$26.60 per ounce. The overall view is almost similar to our previous outlook until we see a breakthrough in May. We are prone to favour higher gains as the dollar’s strength could decline.

Read more at https://www.theborneopost.com/2021/04/25/biden-plans-to-raise-capital-gain-tax/

Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
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