Daily Market Report - 20 Dec 2024
- Uncertainty rules as Wall Street closed on a mixed note depicting that US equities are entering into a consolidation phase.
- Sentiment was spooked by the outlook on interest rates which may stay elevated as reflected from the US 10-year yield that ended higher at 4.566%.
- As for Hong Kong, the HSI declined in tandem with the plunge on Wall Street overnight, underscored by the hawkish statement from the Fed’s slower rate cuts in 2025 comment.
- As such, the 25bps cut by the Hong Kong Monetary Authority failed to ignite any excitement.
- On the home front, the FBMKLCI maintained above the 1,600 mark to remain as the only stockmarket within the SEA region to reverse earlier losses.
- This underpins our belief that the index is looking to end 2024 above the 1,600 level.
- Anyhow, we still hold the fact that the US debt ceiling and National Debt as the major headwinds on Wall Street that hopefully should divert foreign funds back to Asia/SEA regions.
- As such, we expect the index to hover within the 1,600-1,610 range today.