Daily Market Reports Issued By Rakuten Trade Research : Page 6

Wall Street ended mixed as hiring data from the private sector hit the lowest level in 2 years on concerns over prevailing uncertainty is weighing on the US economy.
Meanwhile, Trump again criticized Fed’s Powell for being too late on rate cut as the 10-year yield easing to 4.357%.
As for Hong Kong equities, the HSI maintained its uptrend to close at almost 23,700 or near a 2-month high as traders remained confident that a negotiation between China and the US will take place anytime soon.
Back home, the FBM KLCI finally reversed its recent downtrend to close in positive territory attributed to last minute bargain hunting.
Overall trading activities remained muted as displayed by the low daily volume of 2.4bn shares.
We noticed there has been a spate of downgrades on the FBM KLCI target this year in view of prevailing trade uncertainty.
Nonetheless, we envisage bargain hunting activities to prevail, hence expect the index to trend within the 1,505-1,515 range today.

Wall Street closed broadly higher as sentiment was boosted by potential reversal of Trump’s tariff policy which many see as more of a negotiation tool. Nonetheless, many are also wary of the tariff’s effects on the US economic data. Meanwhile, the US 10-year yield inched higher at 4.458%. In Hong Kong, the HSI rebounded past the 23.500 mark as sentiment was buoyed by the likelihood of a high level discussion between Xi and Trump to mitigate the ongoing trade tension. Whether this will take place remains to be seen, but expectations were rather hyped up. On the home front, the FBM KLCI continues to decline and at one moment even broke the 1,500 psychological level. Nonetheless, selective bargain hunting managed to push the index back up to above the 1,500 mark. Overall, market undertone is still weak, hence the directionless benchmark index exacerbated by the persistent selling by foreign funds. For today, we expect the index to trend between the 1,500-1,510 range again.

Wall Street closed on a positive note as traders largely ignored the heightening trade tension between China and the US as both countries are accusing each other of violating the temporary 90-day agreement.
Meanwhile, the US 10-year yield edged higher at 4.442%.
Over in Hong Kong, the HSI dropped but off the day’s low as sentiment was weighed down by the US/China trade tension which flared up again.
Sentiment was further dampened by the disappointing China’s new home sales which declined 8.7% in April though better than the 11.4% drop in March.
Back home, the FBM KLCI dipped further last Friday to below the 1,510 level as selling from foreign funds continues.
We noticed there were efforts to support the index but was unsuccessful.
Notwithstanding this, we would advocate investors to accumulate on the blue chips namely the banks and telcos if and when the index dips below the 1,500 mark.
For today, we expect the benchmark index to hover within the 1,500-1,510 range.

Wall Street ended positively but only just as uncertainty remains following Trump’s success in reinstating the tariff by the appeals court and may go all the way to the Supreme Court to pause the federal court original ruling.
Amid the on and off tariff confusion, the US 10-year yield eased to 4.426%.
Over in Hong Kong, the HSI jumped to almost the 23,600 mark after the US court blocked Trump’s sweeping reciprocal tariff, boosting hopes that the ongoing trade tension will ease.
On the home front, the FBM KLCI weakened to below the 1,520 level as the sell-down by foreign funds continue.
For this week alone, we noticed foreign outflows have exceeded RM330m and counting.
Though fundamentals remain intact, we suspect the recent sell-down may again be attributed to the flight of funds back to the Hong Kong market.
For today, we expect bargain hunting activities to emerge if and when the index ease closer to the 1,500 mark thus anticipate it to trend between the 1,510-1,525 range.

Wall Street closed lower following reports that Trump has ordered US software firms to stop selling their services to Chinese firms.
After market, Nvidia reported earnings that exceeded consensus forecast rejuvenating market optimism thus resulting in US futures all trending higher now.
Meanwhile, the US 10-year yield climbed higher to 4.475%.
As for Hong Kong, the HSI slipped as traders are getting worried of the ongoing trade tension especially when the current 3-month pause expires in July.
Meanwhile, the weak sentiment was exacerbated by a disappointing set of earnings from PDD Holdings due to hefty discounts and the fact that its peers may be faced with similar predicaments in the near term.
Back home, the FBM KLCI continues to decline despite a strong opening as market undertone remains highly fragile.
Trading on the local bourse was lackluster as illustrated by the low daily volume of 2.5bn shares yesterday.
As such, we expect the ongoing consolidation to persist in the absence of any catalysts hence expect the index to hover within the 1,520-1,530 range today.

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