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 2): The FBM KLCI fell 14.54 points or 0.91% today to close at its intraday low at 1,574.9 after the broader market reacted to weaker US manufacturing data, which underscored the impact of the US-China trade war on the US economy.
Reuters reported that global equity selling was triggered after the Institute for Supply Management’s (ISM) index of factory activity, one of the most closely-watched data on US manufacturing, dropped 1.3 points to 47.8, the lowest level since June 2009.
It was reported that a reading below 50 indicates contraction in the manufacturing sector.
"Markets had been expecting the index to rise back above 50. Global shares fell to one-month lows on Wednesday after US manufacturing activity tumbled to more than a decade low, sparking worries that the fallout from the US-China trade war is spreading to the US economy," Reuters said.
In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said "the slump in manufacturing activity would trigger the question of whether the (economic) slowdown is faster than expected".
Across Bursa Malaysia, a total of 1.85 billion shares were traded for RM1.44 billion.
Selling was broad-based across Bursa indices except for the REIT, utilities and technology gauges. Major decliners included the plantation and energy indices, which closed down 1.5% and 1.05% respectively.
Bursa top stock decliners included KLCI counters Public Bank Bhd and Kuala Lumpur Kepong Bhd.
The most-active stocks included Bumi Armada Bhd, which registered a volume at some 61 million shares. Bumi Armada's share price closed down one sen or 3.13% at 31 sen.
Source: The Edge
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