US market this week

Recent economic development and central bank statements added to signs that the worst is over, but the road to a sustainable recovery is still bumpy and long. Equities declined for the week, on the back of uncertainties arising from the US government’s proposed regulatory reform and S&P downgrades on 18 US banks. Worries that the emergence of commodity-price inflation also threatens to stunt economic recovery and constrain corporate-profit growth.

· This week, FOMC rate decision will take place Thursday, as well as the third and final round of US Q1 GDP estimates. A weaker than expected GDP could be market-moving; GDP is forecasted to go unrevised at -5.7% in 1Q (4Q: -6.3%). Other significant indicators to watch out for include home sales, personal spending and Uni of Michigan sentiments. There will only be one economic release for Malaysia this week, namely foreign reserves as at 15 Jun.