Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street closed broadly higher with both the S&P500 and Nasdaq at record highs after the latest CPI figure came in slightly below expectations thus paving way for the Feds to cut rate next month.
Meanwhile, the US 10- year yield edged higher at 4.289%.
Over in Hong Kong, the HSI ended on a positive note after hovering within a narrow range.
Overall trading remained lacklustre as traders were mostly side-lined ahead of more economic data and corporate earnings.
On the home front, the FBM KLCI closed firmer but off the day’s high possibly due to profit taking activities.
Despite the 30 points gain over the past 5 days, we regard the local bourse’s valuation remains reasonable hence expect more legs for the index towards the 1,600 level.
For today, we expect the index to trend within the 1.565-1,580 range.

Wall Street closed lower ahead of the crucial inflation data later this week as many expect this will dictate the Federal Reserve stance on rate cut going forward.
As expected, the US has extended its tariff deadline on China by another 90 days.
Meanwhile, the US 10-year yield eased slightly to 4.279%.
In Hong Kong, the HSI ended marginally higher amid a lackustre trading session as sentiment remained cautious ahead of the expiration of the US-China tariff truce today.
Back home, the FBM KLCI continued with its impressive climb to close above the 1,560 mark.
The index has been well supported over the past week attributed by the buying support from local institutions.
Despite this, we noticed foreign funds remained as net sellers which is disappointing.
Meanwhile, we see the tariff deadline extension on China as positive and that the US may eventually relent hence expect the index to hover between the 1,555-1,570 range today.

Wall Street rebounded as Apple shares continue to rally after being in Trump’s good books following the huge planned investments in the US.
Nonetheless, we see overall trading pattern to be dictated by how traders interpret the ongoing tariff dynamics on the US economy.
Meanwhile, the US 10-year yield edged higher at 4.285%.
Over in Hong Kong, the HSI tumbled to 24,850 level amid some profit taking activities citing disappointing corporate earnings and deflationary fears in China.
On the home front, the FBM KLCI maintained its impressive run-up as it ended higher towards the 1,560 mark.
Buying has been broad-based but mainly centered on the laggards again.
Despite the positive index performance, daily volume remained less than desirable at around 2.49bn shares.
For today, we expect the index to trend within the 1,550-1,560 range.

Wall Street ended mixed as sentiment turned cautious over the eventual impacts from Trump’s tariffs that may be felt in the next few months.
Meanwhile, the US 10-year yield remained flat at 4.248%.
Looking at Hong Kong, the HSI continued with its uptrend as sentiment was bolstered by the unexpected improvement in China’s July exports that grew 7.2% against the consensus estimate of 5.6%.
Meanwhile, imports rose 4.1% versus the forecast of 1% decline.
As a result, the index breached the 25,000 mark again.
Back home, the FBM KLCI also performed well after a slow start.
Bargain hunters emerged to snap up the index laggards, especially Tenaga thus pushing the benchmark index closer to the 1,550 level.
While we believe there could be some foreign buying, we hope this time they will stay a tad longer.
For today, we expect the index to trend between the 1,545-1,555 range.

Wall Street rebounded as sentiment was buoyed by the additional USD100bn investments by Apple which will bring its total amount to USD600bn over the next few years despite latest report that Trump may impose 100% tariff on imported semiconductors.
Meanwhile, the US 10-year yield edged higher at 4.246%.
Over in Hong Kong, the HSI closed flat as traders were mostly sidelined ahead of a plethora of Chinese economic data and corporate results over the next few days.
Back home, the FBM KLCI managed to end above the 1,540 level attributed to some late buying activities.
Trading has been lacklustre throughout the day due to the absence of fresh catalysts as illustrated by the low daily volume of 2.5bn shares.
For today, we expect the local burse to react in a similar pattern hence anticipate the index to hover within the 1,535-1,545 range.

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