Daily Market Report (21 December 2022)
- Wall Street ended in positive territory albeit marginally as sentiment remained jittery on interest rates following Bank of Japan’s move to tighten its monetary policy that pushed the US 10-year yield to above the 3.69% level.
- As such, the DJI Average added 92 points while the Nasdaq closed flat. Back home, the FBM KLCI was dragged down by broad based sell-down regionally attributed to the rate hike in Japan which saw the domestic index dipped to below the 1,470 mark.
- Despite the improving political scene, we reckon sentiment to remain cautious and expect the index to trend between the 1,465-1,480 today. D
- ue the aggressive stance by Bank of Japan on interest rates, the Japanese Yen strengthened against the Ringgit which may put some pressure on the local Auto stocks making Japanese imports more expensive.
- Meanwhile, the Brent crude closed lower to below the US$80/barrel due to higher build up of inventory.
