Malaysia and global market summary for May 2024.
World Updates:
Japanese equities led the rally, followed by gains in semiconductor-related stocks. The stocks are down nearly 1,000 points
Bank of Japan may have spent more than trillion yen (58.4 billion USD) to pull the yen back from near 34-year lows
The US economy remained robust despite concerns about sticky inflation while the Federal Reserve maintained its stance on 1 potential rate cuts.
Mild economic growth is expected in the US, with cyclical showing lackluster guidance. Overweighting quality and defensive sectors are advised.
China may implement potential quantitative easing (QE) and fiscal spending to boost its economy.
European Central Bank expected to cut interest rates in the near term while monitoring oil prices very closely amid spillover conflict in the Middle East.
Malaysia Updates:
Bursa Malaysia's main index broke the 1,600 points as market capitalisation of the local stocks breezed past the RM2 trillion mark.
Members of the Employees Provident Fund (EPF) who are below 55 years old will have an Account 3 starting from May 11, allowing them to make withdrawals at any time for any purpose.
US Updates:
Earnings growth continued to support the tech rally, with chipmakers expected to see robust earnings growth in the coming years.
With growing concerns about US inflation, some investors are preparing for the 10-year US Treasury yield to breach a 16-year high of 5% hit last October.
China Updates:
China’s consumer price index rose below consensus.
China’s exports fell more than expected in March, shrinking by -7.5 year-on-year attributed to soft overseas demand and tight global monetary policy.
The 1Q GDP growth rate year-on-year is forecasted to be 5%, down from 5.2% in 4Q2023.
Alternative Investments:
Gold prices rose in late April, buoyed by a weaker dollar and continued central banks buying
Oil prices rose as US stockpiles fell for a second week and inflation eased.
On April 19th, Bitcoin underwent its fourth scheduled halving, reducing the mining reward from 6.25 Bitcoins to 3.125 Bitcoins per block.
2024 May Market Outlook Update
Inflation remains stubborn, keeping central bankers cautious about easing policy too soon. As a higher interest rate environment continues, still growing asset classes such as equities and alternatives to be considered, while for those looking to reduce volatility can consider fixed income and non-tech equities.
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