Daily Market Report (7 December 2022)
- Wall Street continued to slide as traders are now worried of a potential hard landing for the US economy amid fresh recessionary fears.
- The DJI Average closed 350 points lower while the Nasdaq declined by 225 points as the US 10-year yield ended lower at 3.53%.
- On the domestic front, the FBM KLCI ended flat as persistent buying support helped recoup earlier losses despite a broadly weaker regional performance.
- As such, we reckon the local bourse is ripe for a rebound after a 30-point decline over the past 3 days.
- Meanwhile, the staggered easing of Covid regulations in China should bode well for regional markets performance.
- As such, we expect the index to hover between the 1,470-1,490 range today with focus possibly shifting to the Plantation stocks with the crude palm oil topping above the RM4,000/tonne on news of Indonesia’s biofuel plans that could reduce supply for exports.
- As for crude oil, prices slumped on concerns of slowing global demand as the Brent crude price dipped to below the USD80/barrel that may see some knee jerk reactions on the Oil & Gas stocks today.
