KUALA LUMPUR, Jan 7 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) recovered from yesterday’s losses to close higher Tuesday, driven by bargain-hunting amidst the positive momentum on Wall Street overnight and most regional markets. At 5 pm, the market bellwether increased 4.32 points or 0.26 per cent to 1,629.79 compared with Monday’s close of 1,625.47. The index opened 0.97 of-a-point lower at 1,624.50 and moved between 1,624.50 and 1,634.27 throughout the day. However, the broader market was negative with losers outpacing gainers 614 to 490, while 537 counters were unchanged, 712 untraded and 10 others suspended. Turnover improved to 3.91 billion units valued at RM3.29 billion against Monday’s 3.47 billion units valued at RM2.66 billion. UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said optimism in the...
Former President Donald Trump announced Scott Bessent as his pick for Treasury Secretary, entrusting him with responsibilities like managing the U.S. debt market, tax policies, and economic sanctions. Bessent’s economic strategies focus on tax cuts, deregulation, deficit reduction, and advancing cryptocurrency adoption, with wide-ranging implications for financial markets.
Key Market Impacts:
1. Equity Markets:
- Tax Cuts and Deregulation: Bessent plans to make Trump-era tax cuts permanent and eliminate taxes on tips, Social Security benefits, and overtime pay.
- Investor Confidence: His pro-business policies, including removing barriers to bank lending and energy production, signal optimism for U.S. equity markets.
- ETFs to Watch: $S&P 500 Index (.SPX.US)$ and $Russell 2000 Index (.RUT.US)$ may benefit from anticipated market growth.
2. Bond Markets:
- Deficit Reduction: Bessent aims to cut the deficit to 3% of GDP, down from an average of 4% during Trump’s first term.
- Treasury Bonds Rebound: A decrease in national debt issuance could drive up U.S. Treasury bond prices. Monitor $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ and $U.S. 20-Year Treasury Bonds Yield (US20Y.BD)$.
3. Cryptocurrency Boom:
- Pro-Crypto Policies: Bessent is a vocal supporter of the crypto industry, calling it a symbol of financial freedom. He has invested in blockchain and DeFi startups, signaling his belief in the sector’s potential.
- Market Growth: Bitcoin prices recently hit $99,000, while crypto stocks like $MicroStrategy (MSTR.US)$, $Coinbase (COIN.US)$, and $CleanSpark (CLSK.US)$ saw substantial gains.
4. Energy and Inflation:
- Boosting Energy Production: Bessent supports expanding U.S. oil output by 3 million barrels per day, which could lower oil prices and tame inflation.
- Dollar Strength: His focus on sustaining the U.S. dollar as the global reserve currency is likely to bolster its value.
Bottom Line:
Bessent’s policies could bring a "Trump Rally" to equities, support a bond market rebound, and fuel growth in the crypto economy, while addressing inflation through energy expansion and deficit cuts. Investors are encouraged to position themselves in advance across equities, bonds, and crypto-related assets.
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