Daily Market Report (13 June 2023)
- The bulls continue to charge on Wall Street as traders are betting that the Fed will pause its rate hike during the FOMC meeting tomorrow.
- Meanwhile, most also expect that the US inflation data will be tame for the month of May giving the likelihood that the Fed will skip its rate hike.
- Therefore, the DJI Average jumped by almost 190 points while the Nasdaq gained 203 points as the US 10-year yield was flat at 3.743%.
- Over in Hong Kong, the HSI ended marginally higher on the expected rate pause in the US and that the upcoming economic data from China will show a slowdown thus the anticipated stimulus from Beijing.
- Back home, the FBM KLCI finally broke out from its slump due to bargain hunting activities across the board.
- Nonetheless, the benchmark index remains at a 2-week low as we see 1,390 as a strong resistance level.
- For today, we reckon the index to hover within the 1,380-1,390 range and if there is a decisive breakout from 1,390, we may see 1,400 as the next target.
- Meanwhile, we believe the Energy sector to see some headwinds as crude oil prices continued to decline with the Brent crude dipped to below the USD72/barrel ahead of the FOMC meeting.
