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
Key Takeaway: Global shares slipped slightly Monday as the US dollar and bond yields hovered near multi-month highs, reflecting expectations of prolonged high interest rates from the Federal Reserve. Investors are also eyeing Nvidia's earnings release later this week.
Market Highlights
1. US Dollar and Treasury Yields
Dollar Index: Steady at 106.69, near its one-year high of 107.07 last week.
Treasury Yields:
- 10-Year Yield: 4.4256%.
- 2-Year Yield: 4.2823%.
Federal Reserve Outlook:
- Futures indicate a 60% chance of a 0.25% rate cut in December, with only 75 basis points of cuts by the end of 2025, down from earlier expectations of 100+ basis points.
- Fed Chair Jerome Powell suggested borrowing costs will likely stay high for longer.
2. Equity Markets
Global Stocks:
- MSCI World Index: Down 0.1%.
- European STOXX 600: Fell 0.2%; major European indexes fluctuated between -0.1% and +0.2%.
- Nasdaq Futures: Up 0.5%, recovering from last week's five-day slide.
- S&P 500 Futures: Gained 0.1%.
Key Focus:
- Nvidia’s Q3 earnings on Wednesday, with expectations of strong revenue growth driven by AI chips. Nvidia's shares are up nearly 200% YTD, but high expectations may amplify market reaction to its results.
Asia-Pacific Markets:
- MSCI Asia-Pacific Index: Advanced 0.2%.
- Nikkei 225 (Japan): Fell 1.1%, weighed by declining tech stocks.
3. Commodities
Oil Prices:
- Brent Crude: Flat at $71.03/barrel.
- US Crude: Dipped 0.2% to $66.88/barrel.
Gold Prices:
- Spot gold jumped 1.1% to $2,590/ounce, recovering from last week’s sharp decline.
Key Factors Driving Market Sentiment
Trump Administration Developments:
- Uncertainty lingers over Treasury Secretary and Trade Representative appointments.
- Trump’s fiscal policies, including lower taxes and higher tariffs, are seen as inflationary, reducing the Fed’s scope for rate cuts.
Japan’s Economic Signals:
- BOJ Governor Kazuo Ueda indicated rate hikes may come if inflation trends align with forecasts but warned of risks from prolonged low real interest rates.
- The yen remains weak, trading at 154.61 per dollar, raising intervention concerns.
Broader Economic Concerns:
- Mixed oil prices and renewed inflation fears continue to shape investor sentiment.
- Weak manufacturing data globally keeps investors cautious.
Outlook
Global markets remain focused on Nvidia’s earnings for clues on AI-driven growth sustainability and the Fed’s policy trajectory. Meanwhile, the strength of the dollar and bond yields suggests investors are bracing for persistent monetary tightening, even as geopolitical and fiscal developments under Trump’s administration unfold.
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