Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street ended mixed as traders opted to lock in profits after a decent run-up on a weekly basis amid a dip in US consumer sentiment for August affected by concerns on inflation.
Meanwhile, the US 10-year yield edged higher at 4.322%.
Over in Hong Kong, the HSI declined on the back of weaker economic data from China.
July’s industrial production from China posted a 5.7% gain while its retail sales increased by 3.7% which were below consensus forecast of 6.8% and 4.6% respectively.
Back home, the FBM KLCI closed lower amid some profit taking activities.
Though the index is still 20 points higher on a weekly basis, it is still disappointing that the index failed to test the 1,600 level.
We believe sentiment may have turned cautious for the time being hence foresee the index to trend between the 1,570-1,580 range today.

Wall Street closed mixed as confusion reigned over the latest US inflation data which showed July’s producer price index (PPP) rose 0.9% as opposed to the forecast 0.2%.
Meanwhile, the US 10-year yield edged higher at 4.287%.
Over in Hong Kong, the HSI closed lower following a decent opening attributed to some profit taking activities.
Traders are also pondering if recent decent corporate earnings are sustainable to support the uptrend.
Back home, the FBM KLCI ended in negative territory despite a strong opening as investors decided to lock in profits following a strong performance over the last few days.
Nonetheless, we noticed foreign funds remained net sellers which are market dampeners.
For today, we expect the index to hover between the 1,575- 1,585 range.

Wall Street continues with its bullish momentum pushing both Nasdaq and the S&P500 to record highs, spurred by hopes for a rate cut by the Federal Reserve next month coupled with a strong corporate earnings season.
Meanwhile, the US 10-year yield eased to 4.236%.
A look at Hong Kong, the HSI cruised past the 25,000 level as traders’ risk appetite increased on hopes for a Fed rate cut in September escalates.
On the domestic front, the FBM KLCI also displayed a solid performance as it surged to almost the 1,590 mark amid a bullish regional performance. .
In view of this, we believe the index is set to test the 1,600 level soon and that this will eventually improve overall trading volume of the local bourse going forward.
We expect buying momentum to persist, hence expect the index to hover within the 1,580- 1,600 range today.

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.

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