Daily Market Reports Issued By Rakuten Trade Research : Page 18

Wall Street slumped as sentiment was spooked by the latest spate of economic data where many fears may be recessionary and not the soft landing that the Federal Reserve is striving for.
The higher than expected weekly initial jobless claims and lower manufacturing index saw the US 10-year yield dipped to 3.981% indicating that funds are shifting out of equities and into bonds.
Over in Hong Kong, the HSI closed marginally lower following the unexpected manufacturing activity data from China which shrank for the first time in 9 months.
Back home, the FBM KLCI ended slightly lower as sellers remained very much in the forefront.
Though surprised, we reckon prevailing unloading can also be attributed to the escalating tension in the middle east amid a regional weakness.
As such, we believe market undertone may have turned cautious after the sell-off on Wall Street thus anticipate the index to hover within the 1,620-1,630 range today.
Meanwhile, it is worthwhile noting that the MYR has strengthened to RM4.57/USD1 which is a YTD high against the greenback.

Wall Street closed on a positive note as sentiment was buoyed by dovish comments from the Federal Reserve on rate cuts as funds returned to the recently trashed mega tech companies.
As a result, the DJIA rose by almost 100 points while the Nasdaq surged by 452 points with the US 10-year yield easing to 4.032%.
As for Hong Kong, the HSI rebounded on hopes for more stimulus following a weak China’s manufacturing activity in July.
There are also hopes that there will be additional easing policies to enhance domestic demand in China as well.
Back home, the FBM KLCI uptrend gathered pace as buyers emerged in force during the afternoon session.
For today, we believe buying activities should continue, taking cue from the robust performance on Wall Street overnight thus expecting the index to hover within the 1,625-1,640 range.
Meanwhile, the heightening tension in the middle east has pushed crude oil prices higher with the Brent crude closing nearer to USD81/barrel.

Market Reports