KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
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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