KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaways
• 30-year JGB yield jumped to a record 3.28% as global long-dated bonds sold off.
• US 30-year Treasury yield rose to 4.98%, near July highs, while 10-year Treasury at 4.28%.
• Concerns over widening government deficits and heavy bond issuance fueling yield surge.
• Gold spiked to a new all-time high of US$3,546.99 as investors sought safe havens.
• Focus shifts to US nonfarm payrolls, Fed rate decision, and European services PMI.
Bonds
• Japan: 30-year JGB yield +8bps to 3.28%, record high, ahead of Thursday’s debt auction.
• US: 10-year Treasury yield at 4.281%, 30-year near 5%, tracking deficit fears and issuance pressures.
• UK: 30-year gilt yield hit highest since 1998 after debt sale; 10-year yield peaked at 17-year high.
Equities
• Asia: MSCI Asia ex-Japan +0.1%; Nikkei –0.5% on tech weakness.
• Australia: S&P/ASX 200 –0.9% after soft Q2 GDP data.
• Futures: Euro Stoxx 50 +0.6%, DAX +0.5%, FTSE +0.3%, S&P 500 e-minis +0.1%.
Currencies
• USD/JPY +0.3% to 148.79, extending dollar strength.
• Dollar Index flat at 98.431 after Tuesday’s 0.7% surge.
• GBP –0.2% to US$1.337, following 1.1% slide in prior session.
• Euro steady, with focus on eurozone PMI data.
Commodities
• Gold hit a record US$3,546.99/oz as investors hedged fiscal and growth risks.
• WTI crude +0.2% to US$65.69/bbl, stabilising after recent softness.
Macro Drivers
• US: Manufacturing PMI showed sixth straight month of contraction; tariffs weighing on factories.
• Tariffs: Trump seeks Supreme Court ruling on tariffs deemed illegal by federal appeals court; duties stay until Oct 14.
• Europe: Markets watching services PMI; French PM Bayrou risks losing confidence vote; UK preparing tax hikes to meet fiscal goals.
• Fed: Markets price in 89% probability of a 25bps cut in September; labour data this week (JOLTs, ADP, NFP) critical for direction.
Investor View
Global markets are navigating a sharp divergence — soaring long-bond yields driven by fiscal concerns versus record-breaking gold prices reflecting safe-haven demand. With US data, Fed policy, and European political risks all converging in September, investors should brace for elevated volatility across bonds, FX, and equities.
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