Daily Market Report (6 December 2022)
- Wall Street tumbled as fears that the Federal Reserves will continue to be aggressive with rate hikes arose following a stronger than expected economic data.
- As a result, the DJI Average lost 483 points while the Nasdaq declined by 222 points as the US 10-year yield inched higher to 3.58%.
- Back home, the FBM KLCI fell to almost the 1,470 level as profit taking activities continued.
- Nonetheless, we reckon buying activities to emerge anytime soon as recent sell-down seems unjustified as the latest easing of Covid restrictions in Shanghai and Hangzhou may continue to support regional markets.
- Therefore, we expect the index to rebound and hover within the 1,470-1,490 range today despite the downturn on Wall Street overnight.
- Meanwhile, special draws for 4D to revert to 8 from 22 next year may see some headwinds for the NFOs (Number Forecast Operators) today.
