Oil jumps above US$107 as Asia sells off, Fed and BOJ rate decisions now collide with a fresh energy shock Markets are opening the week under renewed pressure. Brent crude has jumped about 3% to above US$107 , Asian equities are falling sharply, and U.S. Treasury yields remain close to 5%. At the same time, investors are preparing for possible rate hikes from both the Federal Reserve and Bank of Japan this week . For investors, the central question has become: Can central banks contain inflation without causing a much larger slowdown when energy prices are surging at the same time? 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,656.98, +0.86% Friday 🇺🇸 Dow Jones +0.98% Friday 🇺🇸 Nasdaq +0.96% Friday 🇲🇾 FBM KLCI 1,686.74, -1.10% Friday 🇯🇵 Nikkei -1.7% Monday morning 🇰🇷 Kospi -3.3% Monday morning 🌏 MSCI Asia ex-Japan -0.8% 🛢️ Brent crude ~US$107.36, +2.6% 🛢️ WTI crude ~US$102.48, +2.4% 🇺🇸 U.S. 10Y Treasury ~4.97% 🥇 Gold ~US$4,336...
KUALA LUMPUR (Oct 16): The FBM KLCI closed up 8.67 points or 0.55% at its intraday high today while volume across Bursa Malaysia rose past three billion shares after global equities rose in anticipation that the UK and the European Union (EU) could reach a Brexit deal in time for a leaders' summit this week.
At 5pm, the KLCI closed at 1,574.9 after Asian shares ended higher following overnight gains in US stock markets.
Across Bursa today, trading volume was higher at 3.06 billion shares worth RM2.23 billion. Yesterday, trading volume stood at 2.62 billion shares valued at RM1.73 billion.
Today, TA Securities Holdings Bhd wrote in a note "the local market should trade sideways as hopes for a Brexit deal ahead of the month-end deadline offset caution on the certainty of the initial US-China trade deal" amid strong trading momentum in Bursa lower liners and small market capitalisation (small cap) stocks.
Malacca Securities Sdn Bhd wrote in a report today Bursa's higher share trade volume was due to the gradual return of retail players into the local market.
“The broader FBM Small Cap index has also been making headway of late and we think that run-up still has legs amid the gradual return of retail players that is seeing the overall traded volumes on the rise again. Therefore, we still see more near-term upside as retail players are likely to use this opportunity to undertake more trading activities on previously beaten down lower liners and broader market shares,” Malacca Securities said.
Globally, Reuters reported that most Southeast Asian stock markets rose on Wednesday, tracking broader Asia, as hopes of a deal to avoid a disorderly British exit from the European Union and upbeat US corporate numbers lifted sentiment, with Singapore trading at a two-week high.
"Officials and diplomats involved in negotiations over the acrimonious divorce between the world's fifth-largest economy and its biggest trading bloc said that differences over the terms of the split had narrowed significantly," Reuters said.
Source: The Edge
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