KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Consumer spending in the United States saw a solid increase in July, indicating a stable economic outlook for the third quarter and challenging the likelihood of a significant interest rate cut from the Federal Reserve next month.
Key Highlights:
Rise in Consumer Spending: The Commerce Department reported that consumer spending, which represents over two-thirds of US economic activity, rose by 0.5% in July, following a 0.3% increase in June. This suggests that consumer spending maintained its momentum from the second quarter, contributing to a 3.0% annualized growth rate in gross domestic product (GDP) during that period.
Moderate Inflation Growth: The personal consumption expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, rose by 0.2% in July, matching expectations and following a 0.1% increase in June. Year-over-year, the PCE price index rose by 2.5%, while core inflation, which excludes volatile food and energy components, also increased by 2.6%, consistent with June's figures.
Fed's Monetary Policy Outlook: Despite the rise in consumer spending and inflation above the Federal Reserve's 2% target, inflationary pressures appear to be subsiding. Most economists expect the Fed to resist a half-percentage-point rate cut in September, as the economy remains stable. The Fed has maintained its policy rate in the 5.25%-5.50% range for over a year.
Labor Market and Economic Concerns: Concerns about the US economy persist following a rise in the unemployment rate to a near three-year high of 4.3% in July. However, the slowdown in the labor market is primarily due to reduced hiring rather than layoffs, and Fed Chair Jerome Powell recently indicated a readiness for policy adjustments if necessary.
Overall, the continued growth in consumer spending, coupled with moderate inflation, suggests a resilient US economy, albeit with some caution from the Federal Reserve on rate adjustments.
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