Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street experienced a broad based rebound, following Trump’s statement that the trade relations with China will be fine and may not follow through with his threat of a massive tariff on China.
Meanwhile, the US 10-year yield was flat at 4.059%.
Over in Hong Kong, the HSI declined to below the 26,000 threshold or at a 1-month low as sentiment was further spooked by the heightening trade tension between China and the US.
Back home, the FBM KLCI weakened to around the 1,615 level or a 2-week low as market undertone remains cautious amid the regional sell-down of late.
As the tension between Xi and Trump escalates, we believe traders will remain sidelined for now thus anticipate the index to trend within the 1,610-1,620 range today.
Nonetheless, we envisage bargain hunters to emerge if the index hovers close to the 1,600 mark.

Wall Street closed broadly lower as traders unloaded their holdings as the tension between China and the US became increasingly tense after China’s move to curb exports of rare earth and prompted more tariff threats from Trump.
Meanwhile, the US 10-year yield eased to 4.059%.
In Hong Kong, the HSI weakened further to the 26,300 level tracking the US concerns over the AI bubble and over valuations.
Back home the FBM KLCI slumped to just above the 1,620 mark amid a regional sell-down.
We believe the lack of direction from Wall Street amid the prevailing government shutdown may have instigated the selling until more clarity emerged.
In view of the cautious mood, we expect the index to hover within the 1,615-1,625 range today.

Wall Street ended lower as the US government stalemate continues with no signs of any agreement.
Meanwhile, the US 10-year yield inched higher at 4.142%.
Over in Hong Kong, the HSI managed to pare earlier steep losses to close mildly lower as sentiment was affected by the weak Chinese retail sales during the Golden week.
Meanwhile, investors are also waiting for policy signals from the Communist Party’s meeting later this month.
On the home front, the FBM KLCI managed to end on a positive note amid a rather choppy session.
We suspect foreign funds remained as net sellers following massive net outflows amounting to RM878m over the last 3 days.
Despite this, we believe domestic funds are accumulating local stocks and that retail participation may be improving as observed from the uptick in trading volume above 4.7bn shares yesterday

It was another record breaking day for both the Nasdaq and S&P 500 as traders decided to look past the ongoing government shutdown and the uncertainty over the number of rate cuts by the Fed.
Meanwhile, the US 10- year yield remains flat at 4.123%.
Over in Hong Kong, the HSI declined to below the 27,000 thresholds on growing concerns that the AI boom may be overheating and is turning into a bubble.
Back home, the FBM KLCI ended lower as selling pressure persists predominantly from foreign fund outflows.
In fact, the benchmark index managed to rebound off the day’s low, illustrating the prevalence of underlying buying support within the local bourse.
As such, we remain adamant that the local bourse still has the legs to scale higher hence expect the index to trend between the 1,625-1,635 range today.

Wall Street ended broadly lower as traders decided to lock in profits after a record breaking run recently.
Sentiment was also affected by the ongoing government shutdown which is on its 7th day.
Meanwhile, the US 10-year yield eased marginally to 4.125%.
Hong Kong market was closed for Mid-Autumn Festival yesterday and will resume trading today.
On the domestic front, the FBM KLCI declined to just above the 1,630 level attributed to some profit taking activities, especially by the foreign funds over the last 2 days.
Nonetheless, we believe the local bourse remains rather well supported and see the recent weakness as a brief digestion period for the market.
In view of this, we anticipate the index to trend between the 1,625-1,635 range today.

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