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...
The Federal Reserve will finally receive one of the most critical inflation readings it has been missing for weeks, as the Labor Department releases the September Producer Price Index (PPI) on Tuesday—data that has been stuck in limbo during the 43-day US government shutdown.
The wholesale inflation report, due at 8:30 a.m. Eastern, will offer policymakers a long-delayed look at price pressures building inside the supply chain. The fresh data is also a key input into the September PCE inflation report, the Fed’s preferred gauge, which is now scheduled for Dec. 5—just days before the central bank’s rate-setting meeting on Dec. 9–10.
Why This Matters
For nearly six weeks, the Fed has been flying partially blind, unable to access core inflation statistics that inform its assessment of how sticky price pressures truly are. The arrival of both PPI and PCE before the December meeting is seen as a meaningful shift for markets, which have been reacting to incomplete data and conflicting Fed commentary.
What Economists Expect
FactSet consensus forecasts:
• Headline PPI: +0.3% (Sept)
• Core PPI (ex-food & energy): +0.3%
These point to a return to normal month-to-month changes following a volatile summer, when swings in service categories—wholesale margins, transportation, and portfolio-management fees—drove sharp jumps and drops in the index.
Goods prices are expected to rise modestly, supported by firmer energy costs. What remains uncertain is whether the erratic service categories have stabilised or continue to inject volatility.
What Each Scenario Means
• Firm PPI reading → suggests inflation may be stickier heading into year-end, strengthening the case for a pause in rate cuts.
• Soft PPI reading → supports the idea that the midsummer spike was temporary, giving the Fed cover to cut again in December.
A Divided Fed, A Volatile Market
Fed officials have grown increasingly split:
• Some warn inflation remains too high—a risk compounded by tariff-driven costs.
• Others point to weakening labour data and argue for pre-emptive easing to prevent a sharper downturn.
Markets have moved aggressively with each shift in tone.
According to CME’s FedWatch:
83% probability of a December rate cut (Monday afternoon)
Up from 42% last week
Down from near 92% in late October
With the data blackout now easing, traders may finally get the clarity needed to anchor expectations for the Fed's next move.
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