Malaysian market is expected to mirror the negative sentiment from the US

The Malaysian stock market (FBM KLCI) rebounded by 0.5%, driven by bargain hunting and positive Wall Street performance, despite the Energy and Construction sectors declining. The Healthcare and Technology sectors were the main gainers, each rising by 1.9%.

Globally, US stock markets fell, with the Nasdaq dropping over 1% due to escalating geopolitical tensions after Iran launched missiles at Israel. European markets also closed lower, reflecting these concerns. Asian markets showed mixed results as investors reacted to comments from the US Fed Chairman, which reduced expectations for aggressive rate cuts.

Negative Sentiment

Looking ahead, the Malaysian market is expected to mirror the negative sentiment from the US, with investors cautious amid Middle East tensions. Key US economic indicators this week, such as manufacturing PMI and nonfarm payrolls, will be closely watched. The Oil & Gas sector may rebound due to rising oil prices, while gold stocks could attract attention as safe havens. Conversely, the Technology sector may experience selling pressure following the Nasdaq’s decline.

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