Daily Market Reports Issued By Rakuten Trade Research : Page 5

Wall Street ended broadly lower as profit taking activities emerged after a decent run-up of late.
Overall sentiment was also affected by the shrinking risk appetite as seen from the sharp fall in Bitcoin overnight.
Meanwhile, the US 10-year yield edged higher at 4.09%.
As for Hong Kong equities, the HSI recovered to close above the 26,000 thresholds spearhead mostly by tech heavyweights.
Overall sentiment improved as traders remained confident of a Fed rate cut next month.
On the home front, the FBM KLCI rebounded strongly to above the 1,620 level underpinned by a resurgent in stock accumulation.
It was evident that yesterday’s buying has been centred on the index linked laggards.
In view of the strengthening MYR, we should expect more net foreign fund inflows thus envisage the index to hover within the 1,620-1,630 range today.

Wall Street closed positively as overall mood was bolstered by improving expectations of a Federal Reserve rate cut in December with many expecting a further 25bps reduction.
Meanwhile, the US 10-year yield edged higher at 4.017%.
Over in Hong Kong, the HSI declined as traders are looking for fresh catalysts after pricing in the US rate cut expectations.
On the home front, the FBM KLCI dipped to below the 1,605 level as sentiment may be weighed by the Sabah election on Saturday.
Nonetheless, we believe the local bourse is set for a rebound following the decent outcome from Saturday’s election thus expect the index to trend between the 1,605-1,615 range today

Wall Street was closed for Thanksgiving Day.
Over in Hong Kong, the HSI ended flat after a few days of uptrend as traders are still betting on the possibility of a rate cut by the Fed next month.
Nonetheless, overall sentiment was affected by the weak industrial profit for October after a strong August and September.
On the home front, the FBM KLCI closed broadly lower to below the 1,620 level possibly due to net foreign outflows.
Nonetheless, we believe bargain hunting activities should emerge anytime soon amid the absence of any headwinds.
As for corporate results, it has been a mixed bag thus far with most coming in within consensus expectations.
As such, we expect the index to hover within the 1,615-1,625 range today.
Meanwhile, the Ringgit strengthened to 4.13 against the USD as a Fed rate cut in December remains high on the agenda.

Wall Street finished higher, allowing the major averages to log their fourth straight day of gains ahead of the Thanksgiving holiday.
Gains were bolstered by artificial intelligence leaders such as Oracle, Nvidia, and Microsoft.
The Dow gained 0.67% to 47,427.12, while the S&P 500 added almost 0.7% to 6,812.61.
The Nasdaq surged 0.82% to 23,214.69.
Hong Kong stocks continued to trend higher, buoyed by gains in tech shares.
The HSI finished 0.13% higher at 25,928.08.
On the domestic front, the FBM KLCI extended its positive momentum yesterday, gaining over 12 points on the back of consistent market participation.
The sustained trading interest indicates that confidence is progressively returning to the local market.
Strength in sectors tied to consumer spending, services, and industrial activity continues to reinforce the view that domestic fundamentals are improving.
For today, we project the FBM KLCI to move within the 1,620–1,635 range.

Wall Street notched a three-day winning streak, driven by rising expectations of a December rate cut, with the Dow up over 650 points during the rally.
Overnight, the Dow surged over 1.4% to 47,112.45, the S&P 500 climbed 0.9% to 6,765.88.
The Nasdaq gained 0.67% to 23,025.59.
Hong Kong stocks continue to trend higher as rising bets on US interest rate cuts and a friendlier tone between the US and China cheered investors.
The Hang Seng Index (HSI) climbed almost 0.7% to 25,894.55.
Back home, the FBM KLCI closed lower due to profit takings on consumer and telco stocks and buying interest have shifted to smaller cap stocks.
Nonetheless, we believe bargain hunting activities may set in due to prevailing low valuations.
Importantly, the steady rise in market volume is a constructive sign, indicating that investor interest remains firm despite the current consolidation phase.
As such we foresee the benchmark index to trade within the 1,610–1,625 range today.

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