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Interest rate cut prospects fades
Mon, 10-Jun-2024 07:59 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (+0.19%) extended its lead as the key index capped off by rising 1.33% on weekly basis. Likewise, the positive market breadth lifted the lower liners. Meanwhile, all 13 major sectors closed in green, led by the Healthcare sector (+2.93%) following the positive remarks from Deputy Plantation and Commodities Minister Datuk Chan Foong Hin over Malaysia rubber exports for 2024.
  • Global Markets Review. Wall Street nudged lower after erasing all their intraday gains as the solid jobs data dialled back the prospects of interest rate cut. Similarly, European markets closed downbeat after European Central Bank officials ruled out the next interest rate cut in July 2024, while Asia stock markets ended mixed.

  • Market Outlook. Following a strong run recorded by the FBM KLCI last week, we reckon a consolidation may take shape. Still, any potential pullback will be cushioned by the positive developments as of late alongside with signs of return in foreign funds. While the solid US jobs data highlights the world largest economy is on track for expansion as well as a plus for corporate earnings, it is negative for the prospects of rate cuts. For today, investors will be monitoring over the Malaysia industrial production data which has been cooling off over the past two consecutive months as well as Japan’s 1Q24 GDP growth rate. We expect the property sector to march higher amid the improving prospects with increasing number of transactions in 1Q24. Meanwhile, the healthcare sector may experience a pullback as profit taking sets in from last Friday’s surge.
Sentiment: Positive
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