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 stocks surged on optimism over a possible Ukraine-Russia peace deal, while bond markets sold off as US inflation fears dampened hopes for Fed rate cuts. Meanwhile, oil prices slid and gold remained near record highsas investors weighed the impact of geopolitical and economic uncertainties.
🌍 Stock Markets Gain on Peace Optimism
📈 US & European stock futures rallied on renewed hopes that US-led peace talks could bring an end to the Ukraine-Russia war.
📈 Asia-Pacific markets followed suit, with Japan’s Nikkei up 1.1% and Hong Kong’s Hang Seng gaining 1%, hitting a four-month high.
💬 Kyle Rodda (Capital.com): "Optimism might be premature. Ukraine may struggle to accept concessions like giving up NATO ambitions and ceding territory."
💰 Inflation & Fed Rate Cut Hopes Fade
📌 US consumer prices rose by the most in nearly 1.5 years in January, with core inflation up 0.4%, exceeding expectations of 0.3%.
📌 The Federal Reserve signaled no rush to cut rates, with markets now pricing in just one cut this year (28 basis points)—a drastic shift from earlier projections.
💬 Barclays Analysts: "Risks are now skewing toward the Fed delivering no cuts at all this year. Rate hikes could even enter the conversation."
📉 Bond Market Reaction:
- US Treasury 10-year yields surged 10 bps overnight to 4.66%, their highest in three weeks.
- Yields dipped slightly on Thursday to 4.6151%.
💱 Currency & Commodities Movement
📌 The Japanese yen fell sharply, losing 1.3% overnight to ¥154.52 per USD, as higher US yields made the dollar more attractive.
📌 The euro recovered, trading 0.1% higher at $1.0392.
📉 Oil Prices Dropped on Peace Hopes
- US crude fell 0.7% to $70.88/barrel after a 2.7% drop overnight.
- Brent crude slid 0.7% to $74.66/barrel after falling 2.4% overnight.
📌 Why? A peace deal could end sanctions on Russia, potentially increasing oil supply.
📊 Gold remained flat at $2,902 per ounce, near its record high of $2,942.7 set on Tuesday.
🔍 What’s Next?
✔️ Peace talks between Russia & Ukraine remain in focus.
✔️ Markets await further signals from the Fed on rate policy.
✔️ Oil markets react to geopolitical developments.
📌 While peace hopes fuel optimism, the reality of high inflation and a cautious Fed may limit further market gains.
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