Daily Market Report (16 May 2024)
- Wall Street closed on record highs spurred by lower than expected consumer price index (CPI) and retail sales for April thus re-igniting hopes that the Federal Reserve will cut rates in the near future.
- As a result, the DJIA gained 350 points while the Nasdaq added 231 points as the US 10-year yield eased to 4.344%.
- In Hong Kong, the HSI closed lower after a strong opening following the US imposition of more tariffs on Chinese goods amid the escalating tension between the 2 superpowers.
- Back home, the FBM KLCI ended in negative territory as sellers emerged ahead of the economic data from the US.
- Nonetheless, we expect an uptick in the index emanating from Wall Street’s strong closing overnight hence anticipate the index to hover between the 1,605-1,615 range today.
- Trading on rubber glove stocks took the limelight yesterday buoyed by the US tariff imposition on Chinese goods which will only take effect in 2 years.
- Therefore, we see yesterday’s euphoria as only a knee jerk reaction and advocate investors to be vigilant.
