KUALA LUMPUR: Bursa Malaysia opened lower, as traders digest growing evidence that US could take longer to start cutting federal fund rates.
Wall Street closed lower last night on weak fourth quarter of 2023 earnings from mega banks and declines in both Tesla and Apple amid a tougher market environment.
At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.24 points lower at 1,490.63 compared with Tuesday's close of 1,493.87.
The FBM KLCI opened 1.98 points easier at 1,491.89.
SPI Asset Management managing director Stephen Innes said a series of key economic indicators for December in China, including the fourth quarter and the full-year 2023 gross domestic product figures, will be in the spotlight in Asia. This comes against the backdrop of intense selling pressure in global markets driven by a notable surge in the U.S. dollar and bond yields, he said.
"Investors and analysts will closely scrutinise the Chinese economic data for insights into the country's economic performance and its potential impact on the broader global market dynamics.
"So to the degree the Bursa and local markets hold up could very much depend on the China data," he told Business Times.
Innes said the global risk appetite faced a setback following Federal Reserve Governor Christopher Waller's remarks on Tuesday, suggesting that interest rate cuts might occur later and at a more gradual pace than what markets had anticipated.
"This sentiment is expected to impact Asia on Wednesday, with particular attention on the release of a comprehensive set of economic data from China," he added.
Rakuten Trade equity research vice-president Thong Pak Leng said yesterday the FBM KLCI opened strongly before profit-taking activities in the afternoon session pressuring the index to below the crucial 1,500 level.
"We hope for a quick rebound above this psychological level otherwise we may see another interim consolidation for the index. "Hence, we expect the index to trend within the 1,495-1,505 range today underpinned by broad-based bargain-hunting activities," said Pak Leng.