Daily Market Report (26 June 2023)
- The rally on Wall Street ran out of steam as all 3 major indices closed in negative territory as traders are now concerned about recession especially after the Bank of England surprised everyone with a 50bps rate hike.
- As a result, the DJI Average lost 219 points while the Nasdaq declined by 138 points as the US 10-year yield edged lower at 3.737%.
- In Hong Kong, the HSI slump continues as it ended below the 19,000 mark following the rate hike in the UK thus reviving inflationary fears.
- On the home front, the FBM KLCI also closed in the red amid a broadly weaker regional performance last Friday.
- Financials bore the brunt of the selling after a decent showing last week.
- For today, we reckon sentiment to remain fragile as the DJI Average futures remains in the red at time of writing thus expect the index to hover within the 1,380-1,390 range.
- Amid recent rate increases in Europe, we believe Tech stocks may experience some selling today.
- Meanwhile, in view of the recessionary fears the Brent crude closed below USD74/barrel.
