Daily Market Reports Issued By Rakuten Trade Research : Page 12

Wall Street closed higher despite a weak opening as traders are confident of a Santa Rally amidst a shortened trading week.
Notwithstanding this, the US 10-year yield edged higher at 4.589%, and closing in towards the year high of around the 4.7% level.
Over in Hong Kong, the HSI jumped to almost the 19,900 mark as sentiment improves over Trump’s moderating stance on Tik-Tok which can be depicted as a major step in easing the tension between the US and China.
Back home, the FBM KLCI tried but failed to close above the 1,600 level due to hints of foreign selling within the local bourse.
Nonetheless, we are heartened that the selling is more subdued as illustrated by the low daily volume of only 2.4bn shares.
For today, we expect a muted trading day hence expect the index to hover between the 1,595-1,605 range.

Wall Street staged a relief rebound as sentiment was uplifted by a tame Personal consumption price index.
More importantly, the US averted a government shutdown following the Senate’s approval of a federal spending bill as a stopgap measure for 3 months.
Meanwhile, the US 10-year yield eased marginally to 4.53%.
In Hong Kong, the HSI ended slightly lower as investors await for more catalysts after China’s 3Q GDP growth came in at 4.6% amid headwinds from the property sector and domestic consumption.
On the home front, the FBM KLCI weakened further to end at around the 1,590 level due to persistent foreign selling.
We expect a swift recovery today taking cue from the brighter prospects on Wall Street last Friday, thus expect the index to hover within the 1,595-1,605 range.
All said, the crude palm oil price continues to slide over the past few sessions from around RM5,200/tonne to currently RM4,500/tonne on concerns of demand from China and lower exports.

Uncertainty rules as Wall Street closed on a mixed note depicting that US equities are entering into a consolidation phase.
Sentiment was spooked by the outlook on interest rates which may stay elevated as reflected from the US 10-year yield that ended higher at 4.566%.
As for Hong Kong, the HSI declined in tandem with the plunge on Wall Street overnight, underscored by the hawkish statement from the Fed’s slower rate cuts in 2025 comment.
As such, the 25bps cut by the Hong Kong Monetary Authority failed to ignite any excitement.
On the home front, the FBMKLCI maintained above the 1,600 mark to remain as the only stockmarket within the SEA region to reverse earlier losses.
This underpins our belief that the index is looking to end 2024 above the 1,600 level.
Anyhow, we still hold the fact that the US debt ceiling and National Debt as the major headwinds on Wall Street that hopefully should divert foreign funds back to Asia/SEA regions.
As such, we expect the index to hover within the 1,600-1,610 range today.

Wall Street slumped as traders unloaded their positions on heightening concerns on interest rates, which may stay elevated indefinitely.
This came after the Federal Reserve indicated that there will be only 2 rate cuts in 2025 after reducing the overnight rate by 25bps.
Meanwhile, the US 10-year yield closed higher at 4.52%.
Over in Hong Kong, the HSI finally arrested its recent weakness to close broadly higher on optimism to China’s latest proposal to guide state-owned companies to improve and unlock their values while halving service fees for dividend payouts.
Back home, the FBM KLCI ended marginally higher to just below the 1,600 mark amid hints of bargain hunting activities in support of the local bourse.
Taking cue from the declines on Wall Street, we expect some knee-jerk reaction from the regional markets but expect foreign funds to seek for safer haven which should re-divert funds back to Asia where valuations are more alluring.
As such, we expect the index to hover within the 1,590-1,610 range today.

Wall Street closed broadly lower as traders are now worried that Trump’s as president may not be as positive as initially expected amid the elevated interest rates and heightened uncertainties.
In view of the highly anticipated 25bps rate cut anytime soon, the US 10-year yield eased to 4.395%.
As for Hong Kong, the HSI declined further as investors remained disillusioned over the lack of details from Beijing’s recent mention of easing measures policy, while waiting for the Fed decision to adjust interest rates soon.
On the local front, the FBM KLCI finally relented from the continuous foreign fund selling as it closes below the 1,600 level.
Admittedly, it was another dismal day for regional markets, especially those within the SEA region.
The recent weakness of the local bourse has rendered valuation to a more alluring level estimated at 14.7x currently based on 2025 numbers.
For today, we expect the index to hover within the 1,595-1,605 range.

Market Reports