Daily Market Reports Issued By Rakuten Trade Research : Page 186

Trading on Wall Street is certainly not for the faint hearted as sentiments remain highly volatile.
Nonetheless, the DJI Average closed on a positive note but not before the last hour sell-down which saw the index dipped by around 260 points.
Meanwhile, we anticipate regional markets to be rather directionless today as investors are also keeping an eye on the US unemployment rate for April this Friday which is expected to jump to 16%.
On the local front, the FBM KLCI trended closed to 1,400 before it succumbed to last minute selling again.
As such, we see the index performance to be rather muted today as sellers may be quite evident to lock in profits despite the improving crude oil prices with the Brent closing on a week’s high above US$30/barrel.
We expect the FBM KLCI to trend between the 1,380/1,405 range today with some downside bias.

Download

Wall Street ended into positive territory yesterday following the improving crude oil prices.
The DJI Average saw a late rally to close flat having been in the red for most of yesterday’s trading session.
The 400 points swing in the DJI Average yesterday again showed the high degree of volatility which could see the same within the regional markets today.
Domestically, we reckon the FBM KLCI may see some positive reaction today with the higher crude oil prices with the benchmark index to stay above the 1,380 level.
Overall, we believe markets are in very weak footings and investors should remain cautious.

Download

In a bid to divert his blunders, Trump threatened to impose additional tariffs on China as a punishment for the lack of notice on Covid-19.
As his integrity is slipping down the drain, Wall Street did the same with the DJI Average losing more than 600 points to crash below the 24,000 mark.
Therefore, we can expect another roller coaster ride for the regional markets today as sellers should dominate activities. Locally, the relaxation of the MCO today may be a welcome news however many chose to remain cautious.
Thus, we anticipate the FBM KLCI to face with some selling pressure retesting the 1,380 support level.
On a more positive note, the improved crude oil price recently may be reflected from the strengthening of the MYR against the USD now at RM4.30 from RM4.45 in March.

Download

Wall Street surged overnight as news of a potential drug that will speed up the recovery rate of Covid-19 emerged.
The DJI Average gained by more than 530 points threatening to test the 25,000 mark.
As such, we expect regional markets to see firmer performances today as sentiments are buoyed by the positive developments.
On the local front, we anticipate the FBM KLCI to test the 1,400 level today but continue to advise caution as we envisage a plethora of bear traps as the higher the market, the more susceptible it will be to negative news.
We maintain our sell into strength strategy as the market remains volatile.

Download

Traders relented from their buying spree on US equities as they ran out of reasons to do so.
As a result, the DJI Average slipped into the red zone down 32 points but still above the 24,000 mark on a highly volatile session yesterday.
Meanwhile, volatility of crude oil prices remains high as the WTI is still stuck at below the US$15/barrel which is sending bleak signals to the US shale producers amid looming bankruptcies.
Therefore, we expect regional markets to remain mixed from the lack of any clear indicators.
On the local front, we anticipate another listless trading session today with the FBM KLCI to trend between the 1,360/80 again.

Download

Market Reports