KUALA LUMPUR, Jan 27 (Bernama) -- Bursa Malaysia finished in the negative territory today dampened by subdued trading observed across the board ahead of the upcoming Chinese New Year (CNY) festive holidays, said an analyst. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 14.76 points, or 0.94 per cent, to end at its intraday low of 1,558.97 compared to Friday’s close of 1,573.73. The benchmark index opened marginally lower by 0.42 of-a-point at its intraday high of 1,573.31 and moved in a downtrend path towards closing. Market breadth was negative with decliners thumping gainers 782 to 235, with 415 counters unchanged, 916 untraded and 60 suspended. Turnover narrowed to 2.76 billion units valued at RM2.38 billion compared to 3.0 billion units valued at RM3.06 billion registered last Friday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the thin trading volume today indicated a clear retreat by investors ...
The "no landing" scenario, in which the US economy continues to grow, inflation reignites, and the Federal Reserve is unable to significantly cut interest rates, has re-emerged as a key concern after a blowout US jobs report. The data revealed the fastest job growth in six months, a drop in unemployment, and higher wages, causing Treasury yields to surge and casting doubt on the likelihood of aggressive rate cuts by the Fed.
Investors had been preparing for a potential soft landing or even a recession, pricing in rate cuts and piling into short-term US notes. However, the stronger-than-expected jobs data has upended this strategy, raising concerns about the risk of an overheating economy.
Many prominent voices, including Stanley Druckenmiller and Mohamed El-Erian, have warned that inflation may not be fully under control, and that the Fed may have to reconsider its approach. The 10-year breakeven rate, a measure of bond traders' inflation expectations, has rebounded, and oil prices are also contributing to inflation concerns.
Swap traders now expect just 24 basis points of easing at the Fed’s November meeting, down from previous expectations of larger rate cuts. The 10-year Treasury yield has climbed over 30 basis points, approaching 4%.
With inflation concerns reigniting and Treasury yields rising, next week’s consumer price index (CPI) report will be crucial, potentially reinforcing fears of a no landing scenario, where economic growth persists alongside inflation, limiting the Fed's ability to ease rates.
Comments
Post a Comment