Daily Market Report (2 February 2023)
- Wall Street having languishing in negative territory, recovered strongly following the Federal Reserves 25bps hike in late session.
- The Feds further reiterated that future hikes will depends on the inflation data indicating a less aggressive stance.
- The DJI Average added 7 points while the Nasdaq jumped by 232 points as the US 10-year yield eased to below 3.42%.
- Meanwhile, Hong Kong equities rebounded buoyed by tech stocks as traders are betting on the Feds less aggressive rate hike pushing the HSI 230 points higher to close above the 22,000 level.
- On the local front, the FBM KLCI experienced strong broad-based sell-down on Monday as it ended below the 1,490 mark.
- Nonetheless, we reckon bargain hunting activities should return thus expect the index to trend between the 1,490-1,500 range today with the tech sector to see a strong recovery.
- Meanwhile, crude oil prices weakened on higher inventory data as the Brent crude declined to US$83/barrel.
