Daily Market Report (7 July 2023)
- Wall Street slumped as traders were spooked by the higher than expected job data for June which will increase the possibility for the Feds to hike rates to cool inflationary pressure.
- As a result, the DJI Average lost 366 points while the Nasdaq declined by 113 points as the US 10-year yield edged past the 4% mark to 4.031%.
- Meanwhile, Hong Kong equities endured another dreadful day as the HSI tumbled by 577 points following the Feds minutes indicating more rate hikes coupled with signs of slowing China’s economy that saw the Yuan weakened against the USD at 7.25 or an 8-month low.
- Back home, the FBM KLCI closed weaker amid a poor regional performance despite Bank Negara’s stance to maintain the OPR which was widely anticipated.
- For today, we reckon trading on the local bourse will be muted following the weak closing on Wall Street thus expect the index to hover within the 1,380-1,390 range.
- We believe Tech stocks may experience some headwinds in view of the higher interest rates environment in the US going forward.
