KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Global stocks and bonds regained footing on Tuesday as investors brushed aside political turbulence in France, Japan, and the U.S., focusing instead on the Federal Reserve’s expected rate cuts and sustained optimism around AI-driven growth.
Market Snapshot
Global Equities: Near record highs, supported by easing yields and the AMD–OpenAI multi-billion-dollar chip deal.
Currencies: Dollar up 0.3%, euro soft at US$1.168, yen weak past 150/USD despite verbal intervention from Japan’s finance minister.
Commodities: Brent crude up 0.17% to US$65.58/bbl; gold at new record US$3,977/oz; bitcoin just below record US$126,223.
Regional Highlights
Europe:
STOXX 600 slipped 0.2%, while CAC 40 lost 0.3% as France’s PM Lecornu’s resignation deepened political uncertainty.
French 10-year yield rose to 3.59%, reflecting investor caution.
ECB tone remains steady as inflation risks appear balanced.
Japan:
Nikkei extended its record-breaking rally, underpinned by expectations that incoming PM Sanae Takaichi will maintain fiscal stimulus and delay BOJ tightening.
Strong demand in Japan’s latest bond auction signaled easing jitters after Monday’s selloff.
U.S.:
Futures dipped marginally (S&P 500 -0.1%) after record closes on Monday, but sentiment remains buoyant as traders price in Fed rate cuts by year-end.
The government shutdown continues with limited market reaction.
China & Region:
World Bank upgraded its 2025 China growth forecast, citing resilient consumption and investment, but warned of slower expansion in 2026.
Analyst Commentary
“The fundamental narrative is still one of Fed rate cuts into 2026,” said Daiwa Capital economist Chris Scicluna. “Coupled with the AI story, this should sustain demand for risk assets. Political noise isn’t a showstopper.”
Maybank Securities’ Tareck Horchani noted, “Japan’s fiscal expansion and higher bond issuance are steepening the yield curve, which will keep the yen under pressure.”
Investor Takeaway
Despite mounting political noise, risk assets remain well supported by rate-cut expectations, AI optimism, and liquidity conditions. Short-term volatility in FX and bonds may persist, but the broader macro tone stays constructiveheading into Q4.
Comments
Post a Comment