Daily Market Report (5 June 2024)
- Wall Street closed positively amid a muted session as traders are waiting for May’s payrolls data tomorrow which if weak may induce the Federal Reserve to lower interest rates.
- As such, the DJIA gained 140 points while the Nasdaq added 28 points as the US 10-year yield eased to 4.33%.
- Over in Hong Kong, the HSI rose marginally driven by interests in property stocks following the recent easing in purchase restrictions coupled with hopes for the Federal Reserve to lower rates as the US economy cools down.
- Back home, the FBM KLCI sprinted past the 1,610 mark as we deemed the selling on the local bourse has been overdone last week.
- We believe the buying to be foreign induced thus expect this to continue enabling the benchmark index to break out from its recent consolidation.
- Therefore, we believe the index to hover between the 1,620-1,630 range today.
- Meanwhile, it will be interesting to note if the ECB will reduce interest rates later today.
