Daily Market Report (17 February 2023)
- Wall Street retreated on more inflation worries following the release of a higher than expected producer price index coupled with a lower unemployment claims.
- As a result, the DJI Average declined by 431 points while the Nasdaq lost 215 points as the US 10-year yield closed higher at above the 3.86% level.
- Over in Hong Kong, the HSI rebounded to almost the 21,000 mark over reports that China may boost consumption via injection of liquidity possibly by lowering the banks’ reserve requirement ratio.
- Back home, the FBM KLCI closed on a weak note due to profit taking activities after a positive opening as the index closed below the 1,485 level.
- In view of Wall Street’s performance overnight, we reckon regional markets to experience heighten volatility hence should add some pressure on the local bourse as we anticipate the benchmark index to trend between 1,480-1,490 range today.
- We reckon Tech stocks may face with some headwinds today on the back of the surge in Treasury yields in the US.