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
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As Wall Street anticipates Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, markets are bracing for a potential "reality check" on expectations for aggressive interest-rate cuts. Bond yields have climbed, and stocks have faltered as traders speculate on Powell's likely stance on future monetary policy.
Key Takeaways:
Market Sentiment and Bond Yields: In the lead-up to Powell’s speech, U.S. Treasury yields have risen, particularly on shorter maturities, signaling market concerns about the pace of future rate cuts. The dollar strengthened, and the S&P 500 lost ground, with tech giants like Nvidia and Intel seeing significant sell-offs. This reflects growing caution among investors as they await Powell’s guidance.
Diverse Views from Fed Officials: Fed officials have expressed varying opinions on the timing and magnitude of rate cuts. Boston Fed President Susan Collins and Philadelphia Fed President Patrick Harker both advocate for a “gradual, methodical pace” of easing, while Kansas City Fed President Jeffrey Schmid calls for more data before supporting any cuts. Despite differing views, the consensus appears to favor a cautious approach to easing, with most expecting a 25 basis-point cut in September.
Powell’s Likely Approach: Analysts, including those at NatAlliance Securities and Wolfe Research, believe Powell will likely signal the start of an easing cycle in September but will favor a more measured approach, possibly initiating with a 25 basis-point cut. This "slower to lower" strategy is expected to allow the Fed to ensure that inflationary pressures are fully under control before making more significant policy adjustments.
The broader market sentiment remains mixed, with some traders possibly overestimating the likelihood of aggressive rate cuts. As Powell prepares to address these expectations, his remarks could either temper or reinforce market optimism about the pace of monetary easing through the end of the year.
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