Daily Market Report (5 March 2021)
- Wall Street saw another sharp sell-off as the Federal Reserves failed to ease fears on inflation and rates hike.
- As a result, the US 10-year Treasury yield climbed to 1.56% while the DJI Average lost 346 points to close below the 31,000 mark.
- As sentiments turn nervous, we reckon regional markets will continue to remain soft today.
- On the local front, we believe the FBM KLCI may see further selling but the downside could be negated by bargain hunting on financial stocks as the banks are expected to benefit from the economic recovery with interest rates now expected to remain steady at current level.
- Therefore, we believe the index may hover within the 1,575/85 range today.
- Meanwhile, crude oil prices rebounded with the Brent crude now at almost US$67/barrel and is expected to touch the US$70 level sooner rather than later.
