US Fed Guidance to Lift Sentiment

Bursa Malaysia shares ended lower on Thursday, as the impending Trump presidency raised concerns over more protectionist trade policies coming from the US among investors in the region. The FBM KLCI dipped 10.89 points to close at 1,623.28, off an early high of 1,639.55 and low of 1,622.75, as losers beat gainers 641 to 466 on higher trade totaling 3.78bn shares worth RM3.42bn.

Resistance at 1,648/1,660; Support at 1,600/1,593

Market sentiment should be buoyed by the dovish guidance from the US Federal Reserve on lowering interest rates and more pro-business policies under a Trump presidency. Immediate index resistance is set at the recent high of 1,648, with the next upside hurdles seen at 1,660 and 1,675. Immediate support stays at the 1,600 psychological level, with the next crucial support coming in at the 200-day moving average level of 1,593, and next at 1,575, the 76.4%FR level.

Bargain AMBank & RHB Bank

AMMB would need to overcome the 161.8%FP (RM5.45) to extend upside momentum towards the 176.4%FP (RM5.66), with stronger resistance seen at the 200%FP (RM5.99), and key chart supports coming from the lower Bollinger band (RM5.04) and 123.6%FP (RM4.91). RHB Bank needs sustained breakout above the 123.6%FP (RM6.66) to boost uptrend momentum towards the 138.2%FP (RM6.85), with next hurdle at the 150%FP (RM7.01), while uptrend support from the 50-day ma (RM6.23) and 76.4%FR (RM6.03) cushion downside.

Asian Markets Gain as Traders Assess Trump Victory

Asian markets mostly rose in choppy trading on Thursday, as traders positioned for a second Donald Trump presidency and an expected Federal Reserve interest-rate cut. In stateside, stocks rallied sharply to close at record highs as traders digested Donald Trump's victory in the US presidential election over Kamala Harris. Traders are expecting lower taxes, deregulation and a U.S. president who is not shy to weigh in on everything from the stock market to the dollar, although fresh tariffs could bring challenges in the form of a higher deficit and inflation. Traders also await the US Fed's interest rate decision later in the day and look forward to the accompanying statement for clues about the likelihood of future rate cuts.

In mainland, stocks opened lower but then swung to a gain as traders bet Beijing would shift its focus to boosting domestic demand to offset any negative impact from Trump’s return to the White House. The Shanghai Composite Index jumped 2.57% to 3,470.66 to lead gains in Asia, while Hong Kong’s Hang Seng Index gained 2.02% to 20,953.34. Australia’s S&P/ASX 200 also traded 0.33% higher, ending at 8,226.3 and South Korea’s Kospi inched up by 0.04% to 2,564.63. Japan’s Nikkei 225 was the only major index in negative territory, losing 0.43% to 39,381.41, but the broad based Topix gained 1% to 2,743.08

S&P 500, Nasdaq Hit Record Highs After Fed Cuts Rates

S&P 500 and Nasdaq scaled to record highs overnight, as traders digested a fresh interest rate cut from the Federal Reserve and processed a second Donald Trump presidency. The S&P 500 gained 0.74% to 5,973.10, while the Nasdaq Composite jumped 1.51% to 19,269.46. However, the Dow Jones Industrial Average ended little changed at 43,729.34. The Federal Reserve trimmed interest rates by a quarter point, bringing the target rate range to 4.5% to 4.75%. Fed Chair Jerome Powell said the Fed was “feeling good” about the state of the economy, and the central bank seems likely to stick to the small moves going forward. He also said he would not step down from his post if President-elect Donald Trump asked him to do so.

The continued strength on Wall Street also partly reflects ongoing optimism about the impact of former President Donald Trump's return to the White House. Spirits still appeared buoyant after Trump's presidential election win, as his policies are expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation. Big Tech stocks moved higher to bolster the market, with Apple and Nvidia gaining 2.3% and 1.9%, respectively. Shares of JPMorgan Chase fell 4.3% and American Express dipped 3%, weighing on the Dow.

Source: TA Research - 8 Nov 2024