Daily Market Report (13 June 2024)
- It was another confusing day on Wall Street as both the Nasdaq and S&P 500 closed on record highs while the DJIA ended in negative territory.
- Sentiment was buoyed but May’s lower than expected CPI data but at the same time dampened by the Federal Reserve’s indication of possibly only one cut in rates this year.
- In tandem with the cooling inflation figure, the Fed kept interest rates unchanged as the US 10-year yield eased to 4.318%.
- Over in Hong Kong, the HSI declined to below the 18,000 mark as selling gathered momentum following China’s latest inflation data that signals weak demand.
- Meanwhile, the EU’s imposition of more tariffs on Chinese EVs next month to a tune of 48% would see negative implications for such carmakers on the mainland.
- Back home, the FBM KLCI ended lower despite a strong opening amid a mixed regional performance.
- Nonetheless, we believe buyers should emerge today after the broader market resurgence on Wall Street overnight thus expect the benchmark index to hover between the 1,610-1,625 range.
