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WealthVantage June 2024 Market Outlook & Review Communication

Malaysia and global market summary for June 2024.



World Updates


  • Bank of Japan (BOJ) kept rates unchanged with Yen exchange rate remaining low

  • European Central Bank is expected to cut interest rates in the near term while monitoring oil prices closely amid spillover conflict in the Middle East

  • Britain's FTSE 100 hit a record high after continued uptrend



Malaysia Update


  • Ringgit strengthens against US dollar, closing at 4.6877 amid market uncertainties after United States may have a possibility of interest rate cuts this year

  • Malaysia's Q1 GDP exceeds consensus estimates, growing 4.2% year-on-year

  • The rollout of EPF Account 3 on May 11 may increase liquidity with withdrawals and a positive catalyst for consumer discretionary spending, but concern remains about inflation

  • Government announced the removal of the national diesel subsidy policy starting June set at RM3.35 per litre



US Update


  • US equities have gained past the 5,300 level for the first time, showing that the ongoing rally may have more upside potential

  • Inflation remains too high for the Federal Reserve to start cutting interest rates before September

  • Nvidia's shares were among the biggest winners surging due to a strong revenue forecast, which pushed the stock price above $1,000 and USD 3 trillion market cap for the first time


 

China Update


  • China's first-quarter GDP surpassed expectations, showing a strong 5.3% year-on-year growth.

  • China rates remain unchanged & government purchases of unsold homes are being considered to tackle the weak property market.

  • China's consumer inflation held steady in May but the trend suggest more needed to be done for economic recovery


Alternative Investments


  • After reaching a record high of $2,449.89 on 20 May, gold has fallen approximately 5% with expectations for interest rate cuts diminished following a more hawkish stance in the U.S. Federal Reserve

  • Oil prices were stable in May as investors considered the latest comments from the US Federal Reserve on interest rates amid sticky inflation.

  • Bitcoin rose above USD 65,000 as the crypto rally appears to be ongoing.


2024 June Market Outlook Update

Sticky inflation remains a concern for global markets as it stays above central banks' long-term targets. Despite varying opinions on the timing and extent of rate cuts by major central banks, it is more certain that interest rates have peaked in this cycle. However, short-term volatility is expected. Therefore, we adopt a diversified investment approach, focusing on attractive segments within the global economy.


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