KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
As the year winds down, global markets brace for a pivotal week marked by key economic data, corporate earnings, and central bank decisions. Here’s a snapshot of what’s at stake:
United States: Inflation and Corporate Earnings in Focus
Inflation Data (Wednesday):
- November CPI is expected to rise slightly to 2.7% year-on-year (from 2.6% in October), while core inflation holds steady at 3.3%.
- These figures will influence the Federal Reserve’s policy stance ahead of its December meeting, where a rate cut is widely anticipated.
Earnings Highlights:
- Oracle Corporation (NYSE: ORCL):
- Positioned as a leader in cloud and AI, Oracle’s results will spotlight its role in digital transformation.
- Adobe Inc. (NASDAQ: ADBE):
- Focus will be on AI integration across its platforms, a key driver of its growth narrative.
- Broadcom Inc. (NASDAQ: AVGO):
- Anticipated to deliver insights on the booming AI-driven semiconductor demand, with projected AI revenue of $12 billion in fiscal 2024.
Additional Economic Releases:
- Producer Price Index (PPI), jobless claims, and the NFIB Small Business Optimism Index will round out a packed calendar, offering further clues about the US economy’s trajectory.
China: Trade and Inflation Metrics Under Scrutiny
- Inflation (Monday):
- Expected to remain low at 0.3% year-on-year, reflecting persistent weak domestic demand despite Beijing’s stimulus measures.
- Trade Data (Tuesday):
- Forecasts indicate 10% export growth and a 3.6% rebound in imports, providing a window into the health of China’s recovery and external demand.
Europe: ECB Rate Decision Amid Uncertainty
- Rate Cut Expected (Thursday):
- The European Central Bank (ECB) is likely to reduce the deposit facility rate by 25 basis points, amidst concerns over political turmoil in France and potential US-EU trade tensions.
- President Lagarde’s Commentary:
- Investors will seek insights into the ECB’s strategy for addressing geopolitical challenges and Trump’s proposed tariffs.
MIST Economies: Resilience Amid Global Challenges
- Malaysia:
- Steady unemployment rates and industrial production growth point to resilience in exports and domestic demand.
- Indonesia:
- Trade data will highlight robust export growth fueled by commodities, reflecting strong external demand.
- Singapore:
- A decline in non-oil exports may raise concerns, but Treasury bill auctions will gauge liquidity in a high-rate environment.
- Thailand:
- Consumer confidence and forex reserves data will underscore the economy’s stability, with tourism and agriculture continuing as key drivers.
Key Themes for the Week
- US Leadership:
- Inflation data and corporate earnings will dominate, shaping investor sentiment and setting the tone for global markets heading into 2025.
- China’s Recovery:
- Trade and inflation figures will provide critical insights into the country’s economic health amid ongoing challenges.
- Regional Resilience:
- The MIST economies offer a snapshot of how emerging markets are navigating global uncertainties.
- Central Bank Watch:
- Decisions from the ECB, along with the Federal Reserve’s meeting next week, will shape monetary policy expectations.
Investor Takeaways
This week’s developments will likely set the stage for broader market trends as 2024 draws to a close. With US inflation data as the centerpiece, all eyes are on whether the Federal Reserve will follow through with a rate cut, offering potential relief to markets. Meanwhile, corporate updates and regional data will round out a busy week, helping investors position for the year ahead.
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