Daily Market Report (19 January 2022)
- Wall Street slumped as the reality of imminent higher interest rates sink in. The US 10-year yield inched closer to 1.9% and closer at 1.875% which is a 2-year high.
- The DJI Average lost 543 points while the Nasdaq declined by 387 points to just above the 14,500 mark.
- As the valuation premium for US equities begin to narrow, we reckon market volatility to heighten.
- As for the local bourse, the FBM KLCI which experienced some steep selling of late is expected to remain volatile as market undertone is seen jittery.
- For today, we reckon the index to trend between the 1,535-1,550 range as any further dips may see some bargain hunting activities.
- Meanwhile, the Brent crude price continued with its uptrend to close near the US$89/barrel amid possible disruption on the supply side following the latest attack on the United Arab Emirates .
