Range Bound Pending Clearer Leads

Blue chips were stuck in narrow trading ranges on Tuesday, with most investors sidelined pending clearer leads from key economic data from the US to gauge the current growth momentum. The FBM KLCI rose 4.61 points to 1,615.08, off an early low of 1,609.7 and high of 1,619.05, but losers edged gainers 497 to 490 on muted trade totaling 2.48bn shares worth RM2.26bn.

Support at 1,600/1,590; Resistance at 1,648/1660

Stocks should stay rangebound in the near term as investors remain cautious and assess more economic data on the current health of key global economies. Immediate support stays at the 1,600 psychological level, with the next crucial support coming in at the 200-day moving average level of 1,590, and next at 1,575, the 76.4%FR level. Immediate resistance is adjusted lower to the recent high of 1,648, with next upside hurdles at 1,660, and recent highs of 1,675 and 1,684.

Bargain Gadang & Gamuda

Any further weakness on Gadang should attract bargain hunters looking for rebound upside towards the 38.2%FR (37sen) with stronger resistance coming from the 50%FR (40sen) and 61.8%FR (43sen) ahead, with key support at 30sen and the 26/05/23 low (28sen) capping downside risk. Gamuda needs a confirmed breakout above the 23/10/24 high (RM8.85) to extend upside momentum towards the 123.6%FP (RM9.41) and 138.2%FP (RM10.03) ahead, with support at the lower Bollinger band (RM7.89) and 76.4%FR (RM7.43) cushioning downside.

Asian Markets Subdued Ahead of US Economic Data

Stocks in Asia traded in a tight range Tuesday, as traders remain cautious ahead of the release of key U.S economic data later in the week that will set the stage for the next Federal Reserve decision. It’s shaping up to be a busy week for traders, economic data and corporate earnings are expected to help dictate the market’s near-term direction. Just days before the Federal Reserve gathers to reflect on the appropriate tempo of rate cuts, data is set to show underlying resilience in the US economy and a temporary hiccup in jobs growth. Markets are bracing for the potential prospect of Donald Trump returning to the White House, with most major polls showing him locked in a tight race with Vice President Kamala Harris.

A victory for Trump would be more beneficial for stocks and Bitcoin relative to his Democratic opponent, while a Harris presidency would bring slightly more relief to housing costs, according to a Bloomberg Markets Live Pulse survey. Australia’s S&P/ASX 200 gained 0.34% to 8,249.20, while South Korea’s Kospi inched higher by 0.21% to 2,617.80. In Japan, the Nikkei 225 rose 0.77% to 38,903.68 and the Topix added 0.91% to 2,682.02. The Shanghai Composite Index dropped 1.08% to 3,286.41, while Hong Kong’s Hang Seng Index was up 0.49% to 20,701.14.

Wall Street Mixed as Traders Digest Job Data, Earnings

Wall Street's major indexes ended mixed overnight as traders digested new data on job openings and absorbed a fresh wave of earnings. The Dow Jones Industrial Average fell 0.36% to close at 42,233.05. The S&P 500 gained 0.16% to end at 5,832.92, while the Nasdaq Composite added 0.78% to end at 18,712.75. New data from the Bureau of Labor Statistics released overnight showed job openings in the U.S. fell to 7.44 million in September from a downwardly revised 7.86 million in August. Separately, U.S. consumer sentiment improved at the steepest pace in more than three years, according to the Conference Board's index. Updates on inflation and the jobs market later in the week will also be key in determining Fed policy.

Meanwhile, the US presidential election is injecting some uncertainty into markets in the final fierce days of campaigning. On the earnings front, Google parent Alphabet reported thirdquarter results after the market closed that beat Wall Street expectations. Other Magnificent Seven members—Meta, Microsoft, Amazon and Apple—are set to report later this week. The decrease by the Dow came amid significant losses by Home Depot, Coca-Cola and Travelers.

Source: TA Research - 30 Oct 2024