Daily Market Report (19 May 2022)
- Wall Street was trashed by the bears as fears of inflationary pressures ballooned.
- The DJI Average lost 1,164 points whilst the tech-heavy Nasdaq declined by 566 points despite the US 10-year yield eased slightly to below the 2.9% level.
- On the home front, the FBM KLCI managed to close higher although market undertone remains cautious.
- Nonetheless reflecting the bloodbath on US equities overnight, we believe regional markets to see major headwinds today.
- As such, we reckon the index to possibly trend lower and expect it to hover within the 1,540-1,555 range today.
- Meanwhile, the MGS 10-year yield has risen to a multi-year high of above 4.5% indicating some selling activities.
- Crude oil prices eased marginally with the Brent closing below the US$110/barrel amid the confusion on demand and supply situation.
