Daily Market Reports Issued By Rakuten Trade Research : Page 3

Wall Street closed higher while crude oil plummeted as traders are betting that the delicate ceasefire between Israel and Iran will hold.
Meanwhile, the US 10-year yield eased to 4.296% in view of a possible rate cut in July.
In Hong Kong, the HSI continued with its climb to close above the 24,000 level despite the ongoing uncertainty in the middle east, still overhanging overall trading activities.
Notwithstanding this, traders are seeing an influx of foreign funds back to Hong Kong thus most are positive on the market for now.
Back home, the FBMKLCI ended slightly lower amid a lacklustre session. It remains apparent that the local bourse is still lacking the desired liquidity with the absence of foreign and retail participants.
Nonetheless, we are hopeful that the flight of foreign funds back to Asia is happening especially into Hong Kong hence expect some spillover effect anytime soon. For today, we expect the index to hover within the 1,510-1,530 range.

Wall Street closed broadly higher as traders observed that Iran’s retaliation has been restrained while Trump announces an Israel-Iran ceasefire timeline that will potentially end the war.
Meanwhile, the US 10-year yield edged slightly higher at 4.342%.
Over in Hong Kong, the HSI trended higher spearheaded by oil entities following the escalating tension in the middle east after the US attacked Iran’s nuclear facilities.
Most of the buying has been from mainland Chinese funds.
On the home front, the FBM KLCI surprisingly staged a strong rebound after a weak opening predominantly due to buying support by local institutions.
Having declined to below the 1,490 level, the benchmark index closed above the 1,515 mark.
For today, we expect the index to trend between the 1,510- 1,530 range.
Meanwhile, crude oil prices have declined with the Brent crude dipping below the USD72/barrel level.

Wall Street ended mixed over the uncertainty about rate cuts as it was reported that a cut could be introduced in the next FOMC meeting in end-July contrary to Powell’s earlier comment.
In Hong Kong, the HSI added 290 points to above the 23,500 level over optimism that China’s economic growth may be sustainable.
On the domestic front, the FBM KLCI closed marginally higher, attributed to some bargain hunting activities.
Nonetheless, with the US involvement in the war against Iran last Saturday hence suggesting that Trump lied again about the 2-week time frame thus it would be interesting to see the market’s reaction today.
In view of the potential heightening in market volatility, we expect the index to hover within the 1,480-1,500 range today and would be buyers of blue chips at around the 1,480 level.

Wall Street was closed for holiday yesterday as traders are pondering if the US will join forces with Israel over the next 2 weeks.
At time of writing, all 3 major indices are sharply lower as the US 10-year yield eased to 4.391%.
Over in Hong Kong, the HSI declined sharply on inflationary concerns induced by prevailing higher tariffs coupled with the was in the middle east disrupting global crude oil supply and could be inflationary as well.
Back home, the FBM KLCI closed just above the 1,500 level as we believe foreign selling persists.
Nonetheless, we would advocate our clients to accumulate on the blue chips if and when the index dips below the 1,500 mark at around the 1,480 thresholds.
Meanwhile, the Brent crude price jumped to almost USD79/barrel as the tension between Israel and Iran escalates.

Wall Street ended largely flat after the Fed maintained its interest rate stance, while geopolitical tensions in the Middle East continued to draw attention.
The Dow lost 44 points (+0.1%). The S&P 500 slipped 0.03%, while the Nasdaq Composite gained 0.13%.
Equities in Asia ended broadly lower as the geopolitical tension in Middle East remains unresolved.
As a result, the Hong Kong’s HSI dipped plunged 1.12%.
On the local front, the FBM KLCI finished a tad higher after a roller coaster session.
The low trading volume reflects investor caution, with many avoiding long positions due to persistent global risks and volatile market conditions.
We foresee trading will remain muted due to lack of catalysts and heightened market risks.
Hence, we anticipate the benchmark index to trend within the range of 1,500-1,520 for today.

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