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U.S. 10Y touches 5%, AI stocks tumble and oil stays above US$105 markets brace for tomorrow’s Fed decision Global markets enter Tuesday with three pressure points converging:  U.S. borrowing costs briefly crossed 5%, oil remains above US$100, and the AI trade suffered a sharp reset overnight . The S&P 500, Dow and Nasdaq all closed lower Monday, while the Philadelphia semiconductor index plunged  5.9% .  For Malaysian investors, there was one encouraging counterpoint: the  FBM KLCI rebounded 0.66% to 1,698.01 , snapping four consecutive losing sessions despite the difficult global backdrop.  30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,619.98, -0.48% 🇺🇸 Dow Jones 52,421.20, -0.29% 🇺🇸 Nasdaq 26,186.41, -0.56% 🇲🇾 FBM KLCI 1,698.01, +0.66% 💵 USD/MYR ~4.04–4.05 🇺🇸 U.S. 10Y Treasury briefly >5%; ~4.98% later 🥇 Spot gold ~US$4,313/oz, -0.8% 🛢️ Brent US$105.68/bbl, +~1% ₿ Bitcoin ~US$79,150, +~2% Monday The dollar strengthened Mo...

Oil jumps above US$107 as Asia sells off, Fed and BOJ rate decisions now collide with a fresh energy shock Markets are opening the week under renewed pressure.  Brent crude has jumped about 3% to above US$107 , Asian equities are falling sharply, and U.S. Treasury yields remain close to 5%. At the same time, investors are preparing for possible rate hikes from  both the Federal Reserve and Bank of Japan this week .  For investors, the central question has become: Can central banks contain inflation without causing a much larger slowdown when energy prices are surging at the same time?  30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,656.98, +0.86% Friday 🇺🇸 Dow Jones +0.98% Friday 🇺🇸 Nasdaq +0.96% Friday 🇲🇾 FBM KLCI 1,686.74, -1.10% Friday 🇯🇵 Nikkei -1.7% Monday morning 🇰🇷 Kospi -3.3% Monday morning 🌏 MSCI Asia ex-Japan -0.8% 🛢️ Brent crude ~US$107.36, +2.6% 🛢️ WTI crude ~US$102.48, +2.4% 🇺🇸 U.S. 10Y Treasury ~4.97% 🥇 Gold ~US$4,336...

Global markets are showing a clear rotation away from mega-cap tech into traditional sectors, lifting the Dow to record levels. However, Malaysia’s KLCI remains weak, facing technical resistance despite a stronger ringgit and stable global backdrop. Global markets are rotating but Malaysia is not benefiting. What’s Really Happening In the US, markets are diverging: Dow rising → driven by industrials and healthcare Nasdaq falling → dragged by Big Tech weakness Clear shift away from AI leaders into non-tech sectors At the same time in Malaysia: KLCI is struggling to gain momentum Market remains range-bound with cautious sentiment Technical resistance continues to cap upside Even with a stronger ringgit, equity sentiment remains fragile. Why? This tells us two important things: 1. Global rotation is underway Capital is moving out of crowded tech trades into more defensive or value sectors. 2. Malaysia lacks strong catalysts Unlike US industrials or AI markets, Bursa does not have a clear ...

Malaysian energy stocks are hitting their peak, but the real shift is happening beneath the surface. Key Points Energy earnings likely peak in 2Q2026 Oil stabilising around  ~US$80/barrel Geopolitical risk premium is fading  after US-Iran deal Earnings to  gradually ease from July onwards Sector remains  overweight , but momentum is slowing The oil story is no longer about war risk, it’s about how quickly supply returns and whether demand is strong enough to keep prices near US$80. From War Rally to Normalisation The past few months were driven by: Supply disruptions Shipping constraints Risk premium from Middle East tensions Now, that narrative is shifting: Supply is  gradually returning Production is  coming back online Logistics are  normalising The energy sector is transitioning from a geopolitical-driven rally to a normalisation phase Why Oil Won’t Crash (Yet) Even with peace developments: Infrastructure repairs take time Tanker flows recover grad...

  Shares of  Tanco Holdings  plunged sharply after a temporary price floor was removed, triggering a renewed wave of selling pressure. Sharp Sell-Off Resumes The stock fell as much as  40% intraday to 12 sen , its lowest level in nearly  29 months , before recovering slightly. Last traded:  14.5 sen Volume:  284 million shares traded Among the  most active counters on Bursa Malaysia Key trigger:  The lapse of an  exchange-imposed lower-limit floor , which had briefly stabilised the stock. From High Flyer to Collapse Tanco’s recent volatility has been extreme: +600% rally since 2024 Peak market cap:  >RM10 billion (June 2026) Current market cap:  ~RM889 million More than 90% value wiped out in days , marking one of the sharpest reversals in recent Bursa history. What Caused the Volatility? Several factors contributed to the sharp swings: Speculative momentum-driven rally Exchange queries on  unusual trading activity Rapi...

Malaysian equities opened stronger, with the  FBM KLCI  climbing as much as  0.8% to 1,697 , driven by gains in banking and technology stocks. However,  falling oil prices dragged energy counters lower , highlighting sector divergence. Banks and Tech Lead the Market Market momentum was supported by: CIMB Group Holdings  rising  over 3% Malaysian Pacific Industries  surging  7% Renewed optimism in  AI and growth sectors , following strong global tech sentiment and the ripple effects from the  SpaceX-driven market excitement . Oil Drop Hits Energy Stocks Energy counters underperformed as oil prices declined after progress in US-Iran peace talks: Dialog Group  fell  over 5% Stocks rose because lower oil prices reduce inflation and Fed risks , but this simultaneously pressures  energy sector earnings . Macro Risks Cap Upside Despite the rebound, analysts see  limited upside  for the KLCI: Resistance expected around...

Rakuten Trade has flagged a looming  global “perfect storm”  and trimmed its  end-2026 target for the  FBM KLCI  to 1,770  from 1,800, citing rising macro risks that could unsettle markets. The “Deadly Triangle” Shaping Markets At the core of the concern is a  “deadly love triangle” : High global debt levels Lower interest rate pressure Weakening US dollar trend The US debt has surpassed  US$39 trillion , with annual interest costs nearing  US$1.2 trillion , limiting policy flexibility. Key implication: Central banks, especially the  Federal Reserve , may lean toward  rate cuts , which could  weaken the US dollar  and distort global capital flows. Rising Yields Add Another Layer of Risk Japan is emerging as a critical pressure point: 10-year bond yields at ~2.8% (highest since 1997) Risk of  yen carry trade unwinding  This could trigger  global liquidity tightening , amplifying volatility across equities and...

Tanco Holdings  saw its share price collapse  60% in a single day , extending a brutal selloff that erased nearly  RM10 billion in market value  within days. What Happened Stock plunged  60% to 20 sen  (limit-down) Marked  4th consecutive limit-down session Over  205 million shares traded  in heavy selling Key point: One of the sharpest collapses in Bursa history after a massive speculative rally. From Boom to Bust Shares had surged  600% since 2024 Market cap peaked at  ~RM10 billion (June 3) Now dropped to  ~RM1.2 billion This is a classic parabolic rally followed by a rapid unwind. What Triggered the Selloff 1. Insider Trading Activity Raised Concerns Managing director  sold shares near peak prices Bought and sold large blocks within days Mixed insider signals often shake investor confidence. 2. Speculative Momentum Faded Earlier rally driven by: Data centre story (50MW project with China Mobile) Market speculation When...

Global markets turned cautious as a  sharp tech selloff and escalating US-Iran tensions  weighed on sentiment, while Malaysia’s palm oil sector faced rising pressure from  weak exports and intensifying regional competition . Wall Street Slides on Tech Weakness and Geopolitics US equities declined sharply, led by heavy selling in technology stocks: S&P 500 -1.62% ,  Nasdaq -1.98% ,  Dow -1.87% Super Micro Computer  plunged  28%  after a dilutive share placement Broad declines across chipmakers including  NVIDIA ,  Advanced Micro Devices  and  Taiwan Semiconductor At the same time, oil prices surged  3% to US$90+ , as renewed military strikes heightened fears of  inflation and prolonged high interest rates . KLCI Holds Ground but Breadth Signals Weakness Despite global volatility, Malaysia’s  KLCI edged up 0.21% , supported by selective buying. However, underlying sentiment remained fragile: Losers outpaced gai...

Malaysia’s latest investment data underscores a key theme:  resilience amid volatility , with capital flows holding steady even as global markets grapple with geopolitical and macroeconomic pressures. Stable Investment Flows Signal Confidence Approved investments came in at  RM92.8 billion for 1Q2026 , broadly unchanged year-on-year. While headline growth appears modest, the underlying message is more constructive: Investor confidence in Malaysia remains intact despite external headwinds. Foreign investments continued to dominate at  60.5% (RM56.2 billion) , while domestic investments rose  13% , providing a strong internal growth buffer. Job Creation Surge Points to Higher-Quality Investments The standout figure is the sharp rise in employment impact: Projected jobs surged 46.7% to over 50,000 This suggests a shift toward: More labour-intensive and value-added projects Stronger  economic spillover effects Increased focus on  long-term industrial and servic...