Daily Market Report (1 November 2023)
- Wall Street closed firmer while traders are still debating whether the Federal Reserves will raise interest rates or not.
- Many are expecting the Feds to pause with the rate hike amid the strong US economic data with inflation remains at elevated levels.
- As a result, the DJI Average gained 124 points while the Nasdaq added 62 points despite the US 10-year yield climbing higher to 4.926%.
- Over in Hong Kong, the HSI declined by 294 points as sentiment was spooked by China’s unexpected decline in manufacturing activities last month.
- In addition, traders also sold-down BYD as many fear that the EV maker may not be able to sustain its earnings growth going forward.
- Back home, the FBM KLCI added almost 3 points to stay above the 1,440 mark as market participation remains muted.
- We believe in line with other regional currencies, the pressure on the Ringgit versus the US$ is still an ongoing concern.
- For today, we expect the benchmark index to hover within the 1,440-1,450-range attributed to buying support from local institutions.
- Meanwhile, crude oil prices ease due to build up in inventory as the Brent crude dipped to below the US$88/barrel.
