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...
Wall Street is poised to close the week on a strong note, fueled by a significant premarket surge in Broadcom Inc. that lifted the entire tech and chip sector. The Nasdaq 100 futures climbed 0.8%, as Broadcom forecasted booming demand for its AI chips, pushing its stock up nearly 20% premarket. If gains hold, Broadcom could hit a record high, nearing a $1 trillion market cap.
Key Highlights:
- Broadcom’s Momentum: Riding on AI demand, Broadcom leads the rally with peer companies like Marvell Technology, Micron Technology, Nvidia, and AMD also gaining.
- S&P 500 Performance: The index has surged 27% year-to-date, with strategists predicting it will continue to outpace European markets in 2025.
- Federal Reserve Outlook: A quarter-point rate cut is expected next week, further boosting market sentiment.
Currency and Bond Movements
- The British pound weakened after the UK economy contracted for a second consecutive month in October.
- The euro gained 0.4% after the ECB signaled a less dovish stance on interest rates.
- The US dollar remains steady, set for its second weekly gain, with analysts expecting more strength relative to other currencies.
China’s Economic Signals
- Investors were underwhelmed by China’s pledge to boost consumption due to a lack of detailed fiscal stimulus measures.
- Despite the disappointment, Chinese 10-year government bond yields hit a historic low of 1.8%, as authorities promised further rate cuts and lower bank reserve ratios.
- Bank of America reported a $5.6 billion inflow into Chinese stock funds, driven by policy easing hopes.
Market Snapshot
- Stocks: S&P 500 futures up 0.4%, Nasdaq 100 futures up 0.8%.
- Currencies: The euro rose to $1.0507, while the pound slipped to $1.2658.
- Cryptocurrencies: Bitcoin and Ether rose, trading at $100,276 and $3,925, respectively.
- Commodities: Brent crude gained 3.5% this week on potential US sanctions tightening.
Analyst Insights
Timothy Graf of State Street Global Markets highlighted, “You have a US economy doing well and an incoming administration that is very pro-corporate. This sets the stage for continued market strength.”
As the week ends, all eyes remain on Broadcom’s rally and upcoming Federal Reserve decisions, as Wall Street tech stocks continue to drive the global markets upward.
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