Daily Market Report (10 June 2024)
- Wall Street closed lower as sentiment was affected by the better than expected US job data in May translating to more uncertainties on the Federal Reserve’s stance on intertest rates.
- As a result, the DJIA lost 87 points while the Nasdaq declined by 40 points as the US 10-year yield climbed to 4.434%.
- Over in Hong Kong, the HSI slid by 100 points following China’s slower import data underscoring the weak domestic demand.
- This is despite exports rising by 7.6% in May from 1.5% in April.
- Back home, the FBM KLCI maintained its upward momentum as bargain hunters returned.
- Though the benchmark index failed to stay above the 1,620 level, we deem last week’s performance as decent.
- Post-results for the 2Q24 period, we noticed that many research houses had upgraded their respective 2024 target for the index thus indicating that the market still has the legs to trend higher.
- For today, we believe the index to hover between the 1,615-1,625 range.
- Recent move by the European Central Bank to cut interest rate is also a positive indicator that global central banks are beginning to detach themselves from the Federal Reserve.
