Daily Market Report (16 June 2023)
- Wall Street rallied as traders are betting that the Federal Reserves is close to stop raising interest rates despite chairman Powell indicated that there will be more going forward.
- Meanwhile contrary to the Fed, the ECB (European Central Bank) hiked rate by 25bps to 3.5% or a 22-year high.
- Notwithstanding this, the DJI Average gained 429 points while the Nasdaq jumped by 156 points as the US 10-year yield dipped marginally to 3.72%.
- The absence of rate hike in the US also saw Hong Kong stocks surged by 420 points further boosted by the cut in borrowing costs in an attempt to rejuvenate the ailing economy.
- As for the local bourse, the FBM KLCI ended in negative territory as profit taking activities emerged across the board.
- For today, we reckon the index to possibly strengthen and expect the index to hover within the 1,380-1,390 range.
- Buying interests may return to the Tech sector today following a sell-down yesterday.
- Crude oil prices were also firmer following a no rate hike as the Brent crude closed almost to USD76/barrel.
