Daily Market Report (4 October 2023)
- Reality finally sets in on Wall Street as traders sold-down equities in view of the surging treasury yields as August job data came in stronger than expected.
- As such, the DJI Average tumbles by 431 points while the Nasdaq fell 248 points as the US 10-year yield touched the 4.795% level.
- Over in Hong Kong, the HSI shed 478 points as sentiment remains impacted by the US interest rate scenario coupled with the ongoing debt problems amongst the Chinese property developers.
- Back home, the FBM KLCI struggled to maintain its buying momentum despite the FBM KLCI closing just above the 1,420 mark.
- Domestic market undertone stayed cautious amid a mixed regional performance as knee-jerk reactions from the interest rate scenario in the US is expected to take central stage particularly heightening the volatility of regional currencies in the short term.
- Notwithstanding this, we expect Bank Negara to maintain the OPR at current level circa. 3%.
- Meanwhile, we anticipate trading to be lacklustre today and expect the index to hover between the 1,415-1,425 range.
