Volatile sessions as Wall Street ends lower

Wall Street ended lower amid a volatile session after the Federal Reserve cut interest rate by 50bps.

Sentiment was mixed on the massive rate cut as this may signal a slowing economy and employment market. As a result, the DJIA lost 103 points while the Nasdaq declined by 55 points as the 10-year yield inched higher at 3.713%. Hong Kong market was closed for mid-Autumm Festival.

Volatile sessions

“We were surprised by the weak performance of the FBM KLCI as sentiment remained cautious ahead of the Fed rate announcement.

“Nonetheless, we believe buyers to return following the Fed’s big rate cut which is positive for regional currencies. Therefore, we expect the index to hover within the 1,660-1,670 range today,” says Rakuten.

Meanwhile, the Ringgit has strengthened to 4.24 vs the greenback.

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