KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Bitcoin and other major cryptocurrencies are expected to closely follow the stock market’s response to a critical US jobs report due later on Friday. A rising correlation between digital assets and equities signals that the crypto market may react similarly to stock movements, particularly in response to the Federal Reserve's potential interest-rate policy changes.
Key Takeaways:
High Correlation with Equities: A 30-day correlation coefficient between the largest 100 digital assets and MSCI's global stock index is currently near 0.60, one of the highest levels seen in the past two years. This suggests that cryptocurrencies are increasingly moving in tandem with traditional equities, reflecting heightened sensitivity to macroeconomic factors, such as the US employment data.
Investor Caution Ahead of Jobs Report: The upcoming US employment report is crucial for gauging the health of the world’s largest economy and determining the pace of potential interest rate cuts by the Federal Reserve. A weaker-than-expected report could fuel market volatility, while solid data might temper expectations for rate cuts, affecting speculative assets like Bitcoin. Analysts point to $55,000 as a critical support level for Bitcoin, which has recently edged up to $56,653, still significantly below its all-time high.
Potential Impact of Monetary Policy on Crypto: Looser monetary policy is generally seen as favorable for speculative assets, including cryptocurrencies. The anticipated jobs data is expected to show an uptick in hiring and a slight decrease in the unemployment rate, potentially stabilizing markets after recent growth concerns. A strong report could diminish hopes for aggressive rate cuts, which may impact the recent gains in crypto markets.
Overall, the performance of Bitcoin and other digital assets in the near term will likely depend heavily on the US jobs report, with both markets closely aligned in their response to economic signals and policy expectations.
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