Market players continue to focus on the uncertainty of the anticipated Fed Fund Rate’s hike, which up to November 2016 continues to be maintained at a level of 0.250.50%. This is in addition to the impact brought about by geopolitical uncertainties that includes the US presidential elections.
These various uncertainties subsequently led to the decline in capital flow to the emerging markets and followed by global fund outflow volatility. (Figure 3). Positive expectations has begun to be seen in coal and palm oil (CPO), which in recent months has begun to increase. However, this price increase was largely driven by reduced production as opposed to increased demand.