Daily Market Report (5 January 2024)
- Wall Street closed mixed as sentiment remains cautious on interest rates and the stretched valuations of US equities.
- The latest strong job data can be interpreted as the Fed may not lower interest rates anytime soon.
- Thus, despite the DJI Average ending 10 points higher, the Nasdaq lost 81 points as the US 10-year yield inched higher to above the 4.00% level.
- Over in Hong Kong, the HSI was flat as expectations on lower interest rates from the Federal Reserve dissipates.
- Back home, the FBM KLCI finally came to life from the influx of buyers on a broad based basis.
- The index managed to break above the 1,465 mark to close in on the 1,480 level hence we reckon the uptrend seems sustainable.
- As such, we expect the index to trend between the 1,475-1,485 range today as accumulation on the big caps continues.
- Meanwhile, crude oil, prices remain soft attributed to the building up of US inventory.
- As a result, the Brent crude dipped to US$77/barrel.
