KUALA LUMPUR, Jan 31 — Sentiments in the global financial markets in December were positive amid prospects of easing global trade tensions, said Bank Negara Malaysia (BNM) today.

The central bank said investor’s risk appetite improved following the announcement and subsequent signing of a phase one trade deal between the United States and China on January 15.

"As a result, performance of domestic financial markets had broadly improved.

"During the month, the ringgit appreciated by 1.9 per cent against the US dollar and the 10-year Malaysia Government Securities yield declined by 11.6 basis points, driven by non-resident portfolio inflows to the domestic bond market,” said BNM in its "Monthly Highlights — December 2019” report released today.

It said the improved investor risk appetite also supported the domestic equity market, which led the FBM KLCI to increase by 1.7 per cent to 1,589 points as at end-December.

Meanwhile, BNM said banking institutions were well-positioned to withstand severe macroeconomic and financial shocks, with excess capital buffers of RM111 billion as at end-December 2019. — Bernama