KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
Financial markets are preparing for a potentially volatile week with two major events on the horizon: the US presidential election on Nov 5 and the Federal Reserve’s meeting on monetary policy. Both events could significantly influence market dynamics, as investors monitor the race between Republican Donald Trump and Democrat Kamala Harris and the Fed's latest stance on interest rates.
Trump Trades and Election Volatility: The so-called “Trump trade” has gained traction, with the US dollar rising and Treasury bonds selling off, reflecting hopes for potential deregulation under a Trump win. In contrast, Harris is seen as supportive of clean energy stocks, which may rally if she prevails. Investors are also closely watching the impact of congressional control and the possibility of contested results, both of which could drive market swings.
Fed's Policy Decision and Economic Data Impact: The Fed’s upcoming policy decision, expected to be a 25 basis point rate cut, may affect the S&P 500’s strong 20% rally this year. Strong economic data, including 2.8% growth in Q3 GDP, will likely shape Fed Chair Jerome Powell’s guidance. However, October's slow job growth, influenced by strikes and weather disruptions, adds complexity to the rate outlook.
Investor Takeaways:
- Trump win: May initially trigger profit-taking on Trump-related trades.
- Harris win: Likely boosts clean energy but could spur market repositioning.
- Fed Guidance: Investors seek clarity on the Fed's rate-cutting path given mixed economic indicators.
As markets brace for potential volatility, both the election and the Fed's decision remain critical for investors seeking stability amid uncertain economic and political landscapes.
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