Daily Market Reports Issued By Rakuten Trade Research : Page 192

Donald Trump finally admitted that Covid-19 is more serious than he first thought as he is extending the US closure from April 12 to April 30 citing US deaths could even touch 100,000.
This could have adverse impact on the financial markets and could see sellers overwhelm activities again.
We anticipate heighten volatility and envisage the FBM KLCI to be under a bit of selling pressure re-testing the 1,320 support level.

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Despite a higher than expected unemployment rate and the surge in Covid-19 cases in the US, Wall Street gave us another solid performance predominantly due to the stimulus package yesterday.
Nonetheless, we prefer to remain cautious as we reckon such uptrend is not sustainable.
Regionally we anticipate a volatile regional performance today as traders may heighten their selling ahead of the weekend.
On the local front, we envisage the FBM KLCI to be under a bit of selling pressure and may test the 1,320 support level.

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Reflecting the fragility amongst investors, Wall Street has had a very volatile day despite news of the US$2 trillion rescue package.
The DJI Average managed to break the 22,000 mark before ending up at just above the 21,000 mark as selling pressure took over.
As such, we would expect some volatility today on the regional markets with some downside bias.
On the local front, we would expect some profit taking activities to emerge following 2 days of uptrend with the FBM KLCI seen to re-test the psychological 1,300 support level.

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Wall Street saw one of its finest spike-up yesterday ahead of some aggressive stimulus incentives.
Whether this is sustainable remains to be seen as we are still sceptical of this sharp reversal because the western world may now be the new epicentre of the dreaded coronavirus judging from the high fatalities and new cases of late.
Nonetheless, we believe some positivity today as regional markets are poised to trend higher.
Locally, we expect the FBM KLCI to see the same with the initial target of 1,320 thereafter at 1,350.
Let’s not be overwhelmed by Wall Street’s strong performance as we are still highly susceptible to Covid 19 and believe we haven’t seen the peak yet.
Therefore, we would use this window as sellers into strength.

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Investors remained unconvinced of the Feds latest move to shore up US assets as many are still stuck in selling mode particularly for equities.
As a result, the DJI Average declined another 3% yesterday breaking the 19,000 mark.
On the flipside, investors opted to buy up the US 10-year Treasury with the yield now hovering at the below the 0.8% from above 1.2% only a few days ago.
Nonetheless, we may see some buying support today for regional markets following yesterday’s sharp decline.
On the local front, we expect the FBM KLCI taking cue from the regional market and may see some buying today.
Therefore, we expect the FBM KLCI to trend between the 1,250/80 range with some upside bias.

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