Daily Market Report (1 December 2023)
- The Santa Claus rally came early on Wall Street as stocks closed largely higher with the personal consumption expenditure (PCE) index remaining unchanged for October suggesting that inflation is easing in the US.
- As such, the DJI Average surged 520 points while the Nasdaq dipped by 32 points as the US 10-year yield edged up slightly to 4.33%.
- In Hong Kong, the HSI staged a technical rebound by adding 49 points to close just above the 17,000 level.
- Nonetheless, sentiment remains jittery after the latest PMI manufacturing index from China reported slower activities than expected for October.
- On the local front, the FBM KLCI staged a late uptrend to end positively at above the 1,450 mark.
- Notwithstanding the recent market downtrend, we noticed foreign fund flows remain positive, indicating that the local bourse is in a solid position for a stronger performance in December.
- As the cut in rates becomes louder in the US, we believe foreign funds will continue to snap up regional stocks thus expect the index to trend between the 1,450-1,460 range today.
