Daily Market Report (16 April 2024)
- Wall Street closed lower as tension in the Middles East escalates coupled with that March’s retail sales came in higher than estimated indicating that inflation in the US is here to stay.
- As a result, the US 10-year yield ended at almost a 6-month high of 4.61%.
- Despite a strong opening, the DJI Average ended 248 points lower while the Nasdaq declined by 290 points.
- In Hong Kong, the HSI closed 121 points lower ahead of China’s GDP report for 1Q2024 plus a slew of other economic data over the next few days.
- Back home, the FBM KLCI slumped to almost the 1,540 level amid a weak regional performance attributed to heightened tension in the Middle East.
- Selling on the local bourse was broad based as none of the sectors were spared.
- In the event if prevailing support at the 1,540 mark is smashed decisively, the next support is seen at around the 1,520 level.
- Nonetheless, an immediate rebound is needed thus expect there to be some accumulation activities as a flight of funds will occur from the US considering the high valuation of US stocks.
- Thus, we anticipate the index to hover within the 1,540-1,550 range today.
