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 ...
Oil Surges, HSBC Tightens, and Shein Eyes IPO: 5 Key Market Movers to Start Your Day in Asia
Rising Tensions: Oil prices surged over 5%, with West Texas Intermediate (WTI) settling above $73 per barrel, as markets brace for the possibility that Israel’s retaliation against Iran could target critical oil infrastructure. President Joe Biden confirmed discussions about potential support for strikes on Iranian oil facilities, raising concerns of global energy disruptions.
HSBC Cuts Costs: HSBC is canceling events and cutting back on travel expenses as the bank’s new CEO, Georges Elhedery, focuses on reducing costs. The bank recently scrapped a summit in India and introduced restrictions on internal trips, aiming to trim $2 billion in expenses ahead of its first quarterly results under the new leadership.
Shein Eyes IPO: Shein, the online fashion giant, is preparing for informal meetings with investors ahead of a potential London IPO, according to sources. The company awaits regulatory approvals in China and the UK to proceed, following an earlier plan for a New York listing that was met with opposition from US lawmakers.
Global Easing vs. BOJ: While many advanced economies are moving toward more aggressive monetary easing, the Bank of Japan (BOJ) stands out for considering rate hikes. This divergence is increasing pressure on the BOJ, especially as the Bank of England (BOE) and European Central Bank (ECB) are seen favoring more rate cuts. Meanwhile, the Federal Reserve is expected to follow a more cautious path after a recent 50-basis-point cut.
US Jobs Data: The September US jobs report, due Friday, is set to influence the Federal Reserve’s next move on rates. Economists expect the unemployment rate to hold steady at 4.2% with 150,000 new payrolls, which could impact whether the Fed opts for further cuts in its upcoming meetings.
Other Notable Reads:
- Hedge fund Two Sigma opens real estate unit to outside capital.
- Tokyo’s Shibuya expands street drinking ban.
- OpenAI’s Sam Altman consolidates power as the company’s valuation reaches $157 billion.
These events set the tone for a potentially volatile day in the US markets and could affect the Monday open in Asia, especially if the US jobs report deviates significantly from expectations.
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