Daily Market Report (3 April 2024)
- Wall Street ended lower as sentiment remained clouded over the uncertainty on interest rates following an elevated core Personal Consumption Expenditure index for February.
- As a result, traders are shying away from US equities which are deemed overvalued, to other asset class namely commodities.
- As a result, the DJI Average lost 397 points while the Nasdaq dipped by 156 points as the US 10-year yield edged higher to 4.353%.
- The Hong Kong market resumed trading on a strong note as the HSI added 390 points to almost the 17,000 level buoyed by China’s strong manufacturing activity in March coupled with the launch of Xiaomi EV which drew strong interests.
- At home, the FBM KLCI maintained its uptrend inching closer to the 1,550 mark attributed to strong interest on financials.
- Despite the weak performance on Wall Street, we believe funds may return to the SEA for its reasonable valuations amid market undertone to stay cautious.
- Therefore we expect the index to hover within the 1,545-1,555 range today.
- Meanwhile, the CPO, Gold and Crude oil all charted solid gains overnight.
