KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Market Highlights:
- The Nasdaq 100 climbed 1.9%, hitting a record 20,050, while the S&P 500 rose 0.8%, nearing its all-time high.
- Tech Giants Lead: Stocks like Tesla, Amazon, and Meta Platforms hit all-time highs, driving the market surge.
- The Dow Jones Industrial Average dipped 0.2%, as healthcare and select consumer stocks weighed on performance.
Economic Updates:
Inflation in Focus:
- The Consumer Price Index (CPI) rose 0.3% month-over-month in November, in line with expectations.
- Core CPI (excluding food and energy) also rose 0.3%, maintaining an annual rate of 3.3%, signaling steady progress toward the Fed’s 2% inflation target.
Fed Rate Cut Odds:
- Traders now place a 97% probability on a quarter-point rate cut at the Fed’s December meeting.
- Analysts expect this move to be accompanied by a cautious outlook for further cuts in 2025.
Sector Insights:
Technology Leads the Charge:
- Broadcom (AVGO): Shares surged after reports of collaboration with Apple (AAPL) on AI server chips.
- Tesla (TSLA): Reached a record close of $424.77, boosted by EV optimism and steady inflation data.
Healthcare Pressures:
- UnitedHealth Group (UNH) and CVS Health Corp (CVS) fell following reports of potential bipartisan legislation targeting pharmacy middlemen.
Corporate Highlights:
- GameStop (GME): Shares jumped 7.6% after surprising the market with a Q3 profit.
- Walgreens (WBA): Dropped 5.6% as analysts questioned the likelihood of a buyout by Sycamore Partners.
Market Sentiment:
- Treasuries Dip: The yield on 10-year Treasuries rose to 4.27%, reflecting cautious optimism ahead of further economic updates.
- Calm Returns: The VIX index fell below 14, indicating reduced market volatility.
- Global Influence: The dollar strengthened following reports of potential Chinese yuan devaluation and ongoing discussions of global monetary easing.
Commodities & Cryptocurrencies:
- Gold: Rose 0.8% to $2,716.89 per ounce, as lower bond yields supported safe-haven demand.
- Crude Oil: West Texas Intermediate crude climbed 2.5% to $70.30 per barrel amid potential new U.S. sanctions on Russia.
- Cryptos Surge: Bitcoin soared 4.5% to $101,318.11, while Ether rose 5.3% to $3,833.31, buoyed by optimism in risk assets.
Key Takeaways:
- Market Strength: Optimism around tech giants and Fed rate cuts drove strong gains, especially in the Nasdaq 100.
- Global Monetary Policy: Central banks, including the Fed, European Central Bank, and Swiss National Bank, are signaling potential rate cuts, influencing both currency and commodity markets.
- Seasonal Momentum: Analysts expect risk assets to perform strongly as markets move into the historically bullish year-end period.
Looking Ahead:
Key events to watch this week include:
- ECB and SNB Rate Decisions: Thursday
- US Jobless Claims and PPI Data: Thursday
- Eurozone Industrial Production: Friday
Investors remain focused on inflation trends, Fed policy updates, and corporate developments to gauge market direction.
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