Markets: More clarity expected with upcoming labour data releases
The FBM KLCI closed 0.38% lower yesterday, mirroring broader regional market weakness as soft US manufacturing PMI data raised recessionary concerns.
Lower liners also declined, reflecting the broader market’s weakness. Only two sectors closed in the green (Telecom and Plantation), while 11 sectors ended in the red, with Technology (-2.73%) and Energy (-2.06%) leading the losses.
Markets to see more clarity
Market Outlook. Market sentiment remains turbulent as recessionary concerns linger, with investors anxiously awaiting labor data for clearer insights into the strength of the US economy and potential Fed interest rate decisions.
Analysts reckon caution is warranted following the recent US job openings report, which suggests a slowing labor market. More clarity is expected with the upcoming labor data releases on Thursday and Friday, including jobless claims and nonfarm payrolls.
Riskier sectors, such as Technology and AI-related stocks, may continue to face selling pressure amid the uncertainty, along with the Energy sector, which is impacted by ongoing declines in oil prices. Meanwhile, funds may adopt a defensive stance, seeking safe havens in the financial and REITs sectors.
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