KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
On July 5, 2024, Wall Street reached new intraday all-time highs, while U.S. Treasurys rallied. This movement followed a nonfarm payrolls report that further supported the case for Federal Reserve interest rate cuts, coming after a mid-week holiday.
The benchmark S&P 500 gained 0.29%, reaching 5,553.05 points in midday trading, while the Nasdaq Composite advanced 0.75% to 18,325.49 points. However, the Dow experienced a slight decline, down 0.19% at 39,234.47 points. Of the 11 S&P sectors, seven were in positive territory.
Before the market opened, the U.S. Bureau of Labor Statistics reported that job growth slowed in June, with May's numbers revised lower. Additionally, the unemployment rate increased to 4.1% from 4.0%. According to Wells Fargo's Sarah House, the underlying details indicate a softening U.S. labor market.
Mark Zandi, chief economist at Moody's Analytics, emphasized on social media that it is time for the Federal Reserve to cut interest rates. He pointed to the moderating job and wage growth and the Fed's achievement of its full employment mandate.
Market participants responded to the report by increasing their expectations for a 25 basis point interest rate cut by the Fed in September. According to the CME FedWatch tool, these odds rose to 75% from 68% a day earlier.
U.S. Treasury yields fell as bonds were in high demand. The 30-year yield (US30Y) decreased by 5 basis points to 4.48%, the 10-year yield (US10Y) fell by 9 basis points to 4.29%, and the 2-year yield (US2Y) dropped by 11 basis points to 4.62%.
In stock news, Macy's (M) surged nearly 10% after an investor group led by Arkhouse Management and Brigade Capital raised their offer for the department store chain to approximately $6.9 billion.
Across the Atlantic, the UK general elections resulted in a landslide victory for the Labour Party, ending 14 years of Conservative rule. The British pound appreciated 0.4% against the dollar, trading at $1.2806 (GBP).
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