KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Federal Reserve chair Jerome Powell heads into this week’s policy meeting under intense scrutiny, with political pressure, tariff-driven uncertainty, and critical economic data all converging.
Fed Meeting: Policymakers are expected to hold rates steady at 4.25%-4.50%, but Trump’s repeated calls for immediate cuts have raised tensions over the central bank’s independence.
Key Data Drop:
GDP Q2: Forecast +2.4% annualized, rebounding from a -0.5% contraction in Q1. Consumer spending likely slowed to +1.5%, its weakest stretch since 2020.
Jobs (July): Hiring expected to cool to +100K with unemployment ticking up to 4.2%. Job openings are also projected to decline.
Core PCE (Fed’s preferred inflation gauge): June reading may show a slight uptick, hinting that tariffs are gradually feeding into prices.
Bloomberg Economics warns: “A consumer-led slowdown poses a risk… The labour market will define the path of consumption.”
Global Watch:
EU GDP seen flat; Germany may contract (-0.1%).
South Africa, Ghana expected to cut rates; BoJ, ECB, BOC likely on hold.
Trump’s Aug 1 tariff deadline keeps markets on edge as trade talks with the EU, South Korea, and China intensify.
Bottom Line:
The Fed faces a balancing act between political pressure and economic signals. With Powell under fire and markets at record highs, this week’s data and decision could set the tone for the rest of 2025.
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