MALAYSIA: CPI in Line with Consensus.

• US equity futures continue to edge higher throughout the session, with the NASDAQ leading the way, last up 0.70% and is now testing the ytd highs made Jan 6th, S&P 500 Eminis are 0.30% higher, while Dow Jones Eminis are unchanged.
• Tech stocks are outperforming, due to the announcement from Trump around a $100b AI focused investment, with Asian semiconductor stocks also trading higher, the BBG Asia Semiconductor Index is 1.50% higher.
• Crypto is also likely leading to gains in tech stocks with Bitcoin holding at $106,000, near record highs, as the SEC launched a task force on crypto regulation under President Trump's administration, signaling a friendlier approach to the sector. The initiative, led by pro-crypto commissioner Hester Peirce, aims to provide regulatory clarity and boost innovation, while Trump plans to prioritize digital assets nationally. 

• With several key markets selling off today, China’s futures are hardly moving in what could be signs of central bank involvement in the bond market.
• The benchmark 10YR future rose 0.025 in this morning’s trade to be at 109.20, marginally above the 20-day EMA of 109.00.  The 200-day EMA is 106.52.
• Other EMA levels: 50-day EMA 108.30, 100-day EMA 107.45.  
• China’s 5YR future is down -0.025 today at 106.530 and 2YR future is down -0.036 to 102.794.
• The Lunar New Year holidays sees China out Jan 28-Feb 04 inclusive and it is likely that the Central Bank will provide liquidity leading into the holiday period which could see the resumption of the upward trend.
• Key data out this week: Industrial Profits Jan 27, PMI’s 27 Jan.   

Oil prices have been trading in a narrow range during today’s APAC session after falling this week. WTI is down slightly at $75.77/bbl after a low of $75.62 and high of $75.95. Brent is moderately higher at $79.32/bbl following a low of $79.16 and high of $79.41. The USD index is  up 0.1%.

• Later US industry-based inventory data for last week is released. Recently stocks have been consistently drawdown. With the prospect of 25% tariffs on imports from Canada starting February 1, they may rise this week and next as both producers and refiners sharply front load supplies. The tariffs, if implemented, could increase US fuel prices with refineries in the Midwest geared for heavy Canadian crude.
• The new US administration has made the prospect of increased trade protectionism very real, while increasing the possibility of tighter sanctions against Iran and Venezuela. It has also said that if Russia doesn’t negotiate on a peace deal for Ukraine, it will also enhance sanctions against it.
• Today President Trump also suggested a 10% tariff on Chinese goods as a result of the fentanyl problem.
• Later US December leading index prints and ECB President Lagarde and Bundesbank’s Nagel speak.