Bursa to take cue from Wall Street

The FBM KLCI failed to stay above the 1,630 mark again despite a strong start as sellers kept the uptrend at bay.

“Meanwhile, we also noticed that the absence of strong catalysts saw buying activities side-lined as depicted by the lower volume traded yesterday.

Bursa to take cue from Wall Street

“Nonetheless, we expect the index to trend between the 1,625-1,635 range today taking cue from the robust Wall Street’s overnight performance and heightened likelihood of a rate cut in September. Meanwhile, gold prices surged to an all-time high on hopes of lower rates going forward,” says Rakuten Trade.

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Wall Street closed higher underpinned by broad-based buying, pushing the DJIA to a record high as traders
remained hopeful that the Fed will cut rates this September and a soft landing for the US economy
supported by June’s retail sales which came in better than expected. As such, the DJIA surged 743 points while the Nasdaq was up 37 points with the US 10-year yield easing to 4.158%.

In Hong Kong, the HSI dipped to below the 18,000 level again as sentiment was spooked by China’s gloomy economic outlook amid some downgrades on its growth.