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...
Market Rally Driven by Trump’s Tax Cuts & Economic Optimism
- Global stocks surged after House Republicans approved President Trump’s $4.5 trillion tax-cut plan.
- U.S. stock futures rebounded, with Nasdaq futures up 0.8% and S&P 500 futures gaining 0.5%.
- European stocks climbed for the second day, with STOXX 600 up 0.7%, and blue-chip indexes in Frankfurt, Paris, and London rising between 0.7% and 1.1%.
Treasury Yields & Fed Rate Expectations
- U.S. Treasury yields edged higher:
- 10-year yield rose to 4.311% after dropping 10 basis points on Tuesday.
- 2-year yield increased by 2 basis points to 4.112%.
- Investors anticipate more debt issuance and at least two Fed rate cuts this year due to slowing U.S. economic data.
- U.S. consumer confidence fell at its sharpest pace in 3.5 years, fueling expectations of a dovish Fed policy.
Dollar, Commodities, and Market Trends
- The dollar index gained 0.2%, recovering from a two-month low.
- Oil prices rebounded, with Brent crude at $73.22 and WTI crude up 0.4% to $69.19 after Tuesday’s slump.
- Copper prices jumped 4% after Trump ordered a probe into potential copper tariffs.
- Gold remained steady at $2,915 per ounce.
Nvidia Earnings & AI Market Focus
- Investors await Nvidia’s earnings report, a key indicator of AI sector momentum.
- AI-linked stocks saw a selloff earlier this week, with Magnificent Seven stocks dropping 2.5% on Tuesday.
- Analyst concerns about slowing data center investments could impact sentiment on AI stocks.
Summary:
- Global stocks surged as Trump’s $4.5 trillion tax-cut plan advanced in the House.
- U.S. Treasury yields climbed, while expectations for Fed rate cuts grew due to weak consumer confidence data.
- The dollar rebounded, oil and copper prices gained, and markets are closely watching Nvidia’s earnings for AI sector clarity.
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