Daily Market Report - 19 Dec 2024
- Wall Street slumped as traders unloaded their positions on heightening concerns on interest rates, which may stay elevated indefinitely.
- This came after the Federal Reserve indicated that there will be only 2 rate cuts in 2025 after reducing the overnight rate by 25bps.
- Meanwhile, the US 10-year yield closed higher at 4.52%.
- Over in Hong Kong, the HSI finally arrested its recent weakness to close broadly higher on optimism to China’s latest proposal to guide state-owned companies to improve and unlock their values while halving service fees for dividend payouts.
- Back home, the FBM KLCI ended marginally higher to just below the 1,600 mark amid hints of bargain hunting activities in support of the local bourse.
- Taking cue from the declines on Wall Street, we expect some knee-jerk reaction from the regional markets but expect foreign funds to seek for safer haven which should re-divert funds back to Asia where valuations are more alluring.
- As such, we expect the index to hover within the 1,590-1,610 range today.
