Daily Market Report (8 Aug 2019)
- The slump in the US 10-year Treasury yield should see some funds returning to equities as we reckon the decline was a tad too steep. The US 10-year yield touched 1.71% yesterday which is a 2-year low.
- Regional central banks were also taking turns in revising their rates yesterday namely New Zealand (-0.50%), India (-0.35%) and Thailand (-0.15%) as we may be entering into the realm of lower rates soon amid the trade war uncertainties.
- As such, we envisage such moves to be positive for equities and may see some buying momentum on the local bourse today. Immediate resistance for the FBM KLCI is seen at 1,620 level.
