Daily Market Report (8 March 2023)
- Wall Street closed sharply lower after Federal Reserves Chair Jerome Powell suggested that interest rate needs to go higher and longer, fueling concerns that a larger rate hike during the next FOMC meeting on the 21 & 22 this month.
- As a result, the DJI Average lost 575 points while the Nasdaq declined by 145 points with the US 10-year yield inched higher at 3.97%.
- In Hong Kong, the HSI ended 69 points lower after a solid start as investors became wary of the escalating US-China tech rivalry after Beijing calls for self-sufficiency to counter sanctions by the US.
- On the home front, the FBM KLCI gained 6 points from broad-based accumulation of Banks, Plantation and Telco stocks.
- Nonetheless, we expect some headwinds on stocks today following the Feds rate commentary thus expect the index to trend between 1,450-1,460 range amid regional weaknesses.
- Meanwhile, Oil & Gas stocks should again see some selling pressure following the decline in crude oil prices attributed to inventory build-up that saw the Brent crude to close USD3 lower at USD83/barrel.
