Daily Market Report (18 Feb 2021)
- US equities were quite mixed amid a volatile session yesterday. Buying interests only emerged after the Feds reiterated their stance on maintaining interests rates low indefinitely.
- While both the S&P 500 and Nasdaq eased into negative territory, the DJI Average climbed 90 points to close on another record high surpassing the 31,600 mark.
- On the local front, the FBM KLCI experienced some profit taking yesterday especially on the banks. Nonetheless, we reckon buying interests should return today to test the 1,600 level as both the crude oil and crude palm oil prices surging to multi months high.
- The Brent crude is closing in on our US$65/barrel target as funds are shifting towards commodities for easy money amid the recovery process.
- Crude oil price is benefitting particularly from the cut on the supply side plus current cold spells in some countries. For February alone, Brent crude price has improved by 17%.