On Tuesday, the Malaysia stock market ended its two-day winning streak during which it had gained more than 25 points or 1.5%. The Kuala Lumpur Composite Index (KLCI) now rests just above the 1,675-point level and appears to be heading for another subdued start on Wednesday.Globally, the forecast for Asian markets is broadly negative due to concerns over the global economy. Both European and U.S. markets saw sharp declines, and it is expected that Asian bourses will follow suit.On Tuesday, the KLCI experienced minor losses, primarily from the financials, plantations, and properties sectors.For the day, the index slid 1.54 points or 0.09% to close at 1,676.65, after trading in a range between 1,673.86 and 1,684.06.Among active stocks, Celcomdigi fell 2.62%, CIMB Group declined 0.60%, Genting increased 0.23%, IHH Healthcare rose 0.47%, IOI Corporation dropped 2.25%, Kuala Lumpur Kepong and RHB Capital both decreased 0.65%, Maxis dipped 0.52%, Maybank fell 0.56%, MISC gained 0.24%, MRDIY lost 0.48%, Petronas Chemicals plunged 2.27%, PPB Group tumbled 1.90%, Press Metal declined 0.61%, Public Bank gained 1.05%, Sime Darby dropped 1.98%, SD Guthrie fell 0.22%, Sunway jumped 1.21%, Telekom Malaysia declined 0.88%, Tenaga Nasional rallied 2.34%, YTL Corporation advanced 0.66%, YTL Power retreated 1.25%, and Axiata, Genting Malaysia, and QL Resources remained unchanged.Wall Street provided a negative lead as major averages opened significantly lower and saw further declines as the day progressed.The Dow Jones Industrial Average plummeted 626.15 points or 1.51% to finish at 40,836.93, while the NASDAQ dropped 577.33 points or 3.26% to close at 17,136.30, and the S&P 500 tumbled 119.47 points or 2.12% to end at 5,528.93.The sell-off on Wall Street was driven by a report from the Institute for Supply Management indicating a continued decline in U.S. manufacturing activity in August. Additionally, the Commerce Department’s report unexpectedly showed a modest decrease in U.S. construction spending in July.The weakness on Wall Street also stemmed from traders looking to take profits from the previous session’s gains amid ongoing uncertainty regarding the outlook for interest rates.The Federal Reserve is widely anticipated to cut rates at its upcoming meeting later this month, though there is some debate over the extent of these cuts. According to CME Group’s FedWatch Tool, there is a 63.0% chance of a quarter-point rate cut and a 37.0% likelihood of a half-point rate cut later this month.Oil prices also took a hit, falling to a nine-month low on Tuesday due to fears of oversupply from OPEC. West Texas Intermediate Crude oil futures for October ended the session down $3.21 or 4.4% at $70.34 per barrel.The material has been provided by InstaForex Company – www.instaforex.com
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