KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Global markets slid on Friday as concerns over a potential US government shutdown mounted and Donald Trump’s trade threats against Europe heightened tensions. Investors also focused on upcoming US inflation data that could influence Federal Reserve policy for 2025.
Key Market Highlights
1. US Government Shutdown Risks
- A spending bill failed in the House of Representatives on Thursday, highlighting political volatility under President-elect Donald Trump.
- Trump’s proposed tariffs and spending policies have increased uncertainty, with credit default swaps (CDS) on six-month US bills rising to a four-week high of 11 basis points.
2. Trump’s Trade Threats
- Trump warned the European Union to increase purchases of US oil and gas or face tariffs:
- “Otherwise, it is TARIFFS all the way!!!” he stated on Truth Social.
- European stocks fell 1%, marking a 3% weekly drop, as US stock futures slipped 0.7%-1.1%.
3. Inflation and Fed Policy Outlook
- The Core Personal Consumption Expenditures (PCE), a key US inflation measure, is expected to rise 0.2% in November.
- A higher reading could further reduce expectations for rate cuts next year, with markets now pricing in fewer than two cuts for 2025.
4. Treasury and Currency Market Impact
- 10-year Treasury yields surpassed 4.5% for the first time since May, amid a cautious Fed stance.
- Dollar Performance:
- Down 0.3% at 108.12, but close to a two-year peak of 108.43.
- Euro gained 0.2% to US$1.03925.
- Yen recovered 0.4%, trading at 156.87, after plunging 1.7% the previous day due to the Bank of Japan's dovish stance.
5. Commodity Prices
- Oil: US West Texas Intermediate fell 0.6% to US$68.96.
- Gold: Gained 0.5% to US$2,605 per ounce, benefiting from safe-haven demand.
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