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Market Daily Report: Bursa Malaysia Ends Higher On Bargain Hunting Ahead Of BNM Rate Decision

KUALA LUMPUR, Sept 2 (Bernama) -- Bursa Malaysia ended higher on Wednesday on bargain hunting following the recent sell-off, ahead of Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision on Thursday. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.20 points 1,708.74, compared with Tuesday’s close of 1,700.54. The benchmark index opened 0.42 of a point better at 1,700.96 and fluctuated between 1,695.89 and 1,709.71 throughout the day. On the broader market, losers trounced gainers 746 to 424, while 554 counters were unchanged, 1,048 untraded and 17 suspended. Turnover declined to 4.20 billion units valued at RM3.52 billion from 5.52 billion units valued at RM4.42  billion on Tuesday. 

The Fed Is Trapped: Inflation Too Hot to Cut, Too Soft to Hike

US inflation tells a conflicting story —  headline is too high, but core is cooling . This leaves the Federal Reserve in a difficult position with  no clear policy direction . The Core Dilemma “The Fed is trapped because headline inflation is too high to cut rates, but core inflation is too soft to justify aggressive hikes.” Headline CPI:  4.2% YoY  (elevated, driven by energy) Core CPI:  0.2% MoM  (cooling, below expectations) Key point: Inflation looks strong on the surface, but weak underneath. What’s Really Driving Inflation The spike is not broad-based: Energy surged: Gasoline  +40.5% YoY Contributed  over 60% of CPI increase Core components showed weakness: Goods prices declined Transport and insurance costs eased This is an oil-driven inflation story, not demand overheating. Why the Fed Can’t Move No Room to Cut Headline above 4% = politically and economically sensitive Cutting now risks  losing credibility on inflation No Urgency to H...