The FBM KLCI retreated amid worries over China’s economic slowdown, which led to an unexpected lending rate cut. While the market may trade in a positive-biased mode and looking forward to a brighter outlook in the ongoing earnings season, China’s economic slowdown may indicate risk and a spike in recession fears.

The FBM KLCI eked out marginal gains amidst the positive-biased regional market. Also, Wall Street ended positively with the easing inflation expectations, coupled with the stronger-than expected consumer sentiment should see buying interest spilling over to our stock markets. Given the key index is staying above the 1,500 level, the local bourse may see more upward movement driven by optimism ahead of the upcoming reporting season, in view of the better-than expected Malaysia GDP data.

The FBM KLCI climbed above the psychological 1,500 level amid positive regional market sentiment as investors cheered that the inflation is cooling off in the US for June. Whilst the market has stabilised along 1,500, we believe the profit taking activities may pick up with the mixed trading tone on Wall Street overnight, following a drop in PPI data. Hence, broader market may take a breather for the short term; especially the technology sector.

The FBM KLCI slipped as investors dumped selected glove, technology, and banking stocks prior to the released of the US CPI data. With the CPI numbers came in below the consensus figure, we believe the positive sentiment from Wall Street may spillover to the local front, especially within the technology sector. Investors should expect a lower scale of interest rate hikes moving forward from the Feds. Hence, it provides a decent window of opportunity to at least trade until the next CPI which will be in 13th September.

The FBM KLCI booked marginal gains amid lacklustre trading as cautious undertone remained in place ahead of the US inflation data that will be released later tonight. With the Wall Street overnight ended negative, we opine that the investors may stay sidelines for the session. Upside potential might be capped by the elevating global risks such as China-Taiwan tension and heightened inflationary pressures environment. However, traders are likely to position themselves selectively ahead of the August reporting month as foreign buying remains positive over the past few days.

The FBM KLCI finished lower on the back of cautious undertone ahead of the US inflation data that will be released on the 10th of August. Given the market has rallied over the past two months, investors will be staying sidelines and monitor closely on the CPI data in order to decide on the market directions as well as the FOMC’s interest rate decision moving forward. Also, the development of China’s aggressive drills near Taiwan, may pose downside risk to the stock markets.

The FBM KLCI retreated mildly on the back of elevated tension between China and Taiwan. Also, with the market expecting a more hawkish tone from the FOMC meeting going forward after the better-than-expected jobs data on Friday, we expect the near-term volatility to persist. However, we believe the downside risk might be limited if the economy is on the recovery tone; short term upward move could be seen. Similarly, on the local front, we are heading into the August reporting month, investors may position themselves ahead of the period within sectors with higher earnings certainty.

The FBM KLCI bounced higher in tandem with most of the regional peers, underpinned by buying momentum in selected utilities, telecommunication and banking heavyweights. We believe sentiment is likely to stay positive bias for the session as investors have shrugged off the US-China geopolitical risks to focus on the upcoming earnings season.