Daily Market Report (12 July 2023)
- Wall Street maintained its uptrend despite the uncertainty over the interest rate outlook ahead of June’s CPI which is due later today further illustrates that there is ample liquidity within the financial system.
- As such, the DJI Average jumped 317 points while the Nasdaq gained 75 points as the US 10-year yield eased to below the 4.0% level at 3.978%.
- In Hong Kong, the HSI added 180 points after more aid was granted for property developers to improve their cashflows and complete their project coupled with short covering activities by hedge funds.
- Overall sentiment improved further as the crackdown on tech companies is expected to ease.
- On the local front, the FBM KLCI surged past the 1,390 mark due to late buying activities.
- Judging from the broadly improved regional markets’ performance, we suspect foreign funds to be net buyers recognising the region’s low valuations and stable monetary policy.
- Therefore, we reckon the benchmark index to maintain its uptrend and expect it to trend within the 1,385-1,395 range today.
- Meanwhile, decline on the supply side had pushed crude oil prices higher with the Brent crude testing the USD80/barrel.
