Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street ended higher following a choppy session as traders largely ignored the possibility of a government shutdown today.
However, overriding concerns from the shutdown would be the absence of September’s job data coupled with a potential downgrade by the rating agencies.
Meanwhile, the US 10-year yield inched higher at 4.154%.
Over in Hong Kong, the HSI rebounded strongly to near the 27,000 level before taking a break tomorrow for National Holiday.
Overall sentiment was boosted by expectations of more easing measures from Beijing after a gloomy manufacturing activity data in China that saw declines for the 6th consecutive month.
Back home, the FBM KLCI managed to crawl back into positive territory despite a sudden sharp sell-down an hour before closing.
We suspect this could be the work by foreign funds.
Meanwhile, encouraging loans growth for August at 5.6% may see some interest back on the Banking segment hence expect the index to trend between the 1,605-1,615 range today.

Wall Street ended higher as sentiment improved on AI related stocks after some concerns over the AI build up.
Traders are also looking at a potential government shutdown this Wednesday that could instigate a mass firing of federal workers.
Meanwhile, the US 10-year yield inched lower at 4.141%.
Over in Hong Kong, the HSI rebounded as traders bought up shares of car makers, solar energy firms and metal producers amid signs that Beijing crackdown om price wars are bearing fruits.
Meanwhile sentiment was further boosted by the People’s Bank of China (PBOC) pledge to step up easing policy to support growth.
Back home, the FBM KLCI closed marginally higher on muted buying activities.
Foreign funds may have turned into net sellers after signs of encouraging net foreign inflows a few weeks ago.
For today, we expect the index to hover within the 1,605-1,615 range. Finally, gold price hit another record high topping above the USD3,800/oz.

Wall Street closed broadly higher as sentiment was boosted by the latest personal consumption expenditure (PCE) price index, that came in within expectations ensuring that the Federal Reserve will stick to its easing policy.
Meanwhile, the US 10-year yield inched higher at 4.174%.
Over in Hong Kong, the HSI continued to slide to close just above the 26,000 level as traders are becoming wary of its valuations amid the latest bouts of Trump’s tariffs.
On the home front, the FBM KLCI surprisingly closed on a strong note, attributed to late buying activities.
We believe buying activities should persist as more foreign funds are looking for value propositions thus expecting the index to trend within the 1,605-1,615 range today.
It is worthwhile noting that gold price has hit another record high and ready to test USD3,800/oz.

Wall Street ended negatively for the third session in a row as an unexpected drop in jobless claims and a sharp upgrade in GDP growth, developments that complicate the outlook for rate cuts amid uncertainty about Federal Reserve policy.
The Dow slipped 0.38% to 45,947.32, while the S&P 500 and Nasdaq fell 0.5% respectively.
Over to Hong Kong, stocks finished lower as profit taking activities continued.
As a result, the HSI dipped 0.13% to 26,484.68.
On the local front, the FBM KLCI closed lower as buying interest shifted toward second-liner and broader market stocks.
Despite this, we remain optimistic, buoyed by the improving market volume, which reflects that participation in the broader market is building up.
As such, we foresee the benchmark index trending within the 1,595–1,610 range for today.

Wall Street lost ground as profit-taking emerged at record-high levels, spurred by Fed Chair Jerome Powell’s warning on stretched valuations and caution ahead of fresh inflation data.
The Dow slipped 0.37% to 46,121.28, while the S&P 500 fell 0.28% and the Nasdaq retreated 0.33%.
Hong Kong equities rose despite the typhoon disruption as investor sentiment is buoyed by expectations for economic stimulus from China.
As a result, the HSI slipped 1.37% to 26,518.65.
Back home, the FBM KLCI closed lower due to profit taking activities.
Despite closing in the red, the pickup in trading volume signals that interest in the market is returning.
This healthier level of activity reflects investors’ willingness to participate, which could provide a foundation for the index to stabilise and potentially recover when fresh catalysts emerge.
As such we foresee the benchmark index to trend within the range of 1,595-1,610 for today.

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