Profit taking may contribute to an initial pullback on Wall Street, as traders cash in on the strong gains while in Malaysia, the KLSE Malaysia stock market has climbed higher in four straight sessions, gathering more than 40 points or 2.9 percent along the way, gainers include CIMB Group, Maybank, Genting Malaysia, IHH Healthcare, Kuala Lumpur Kepong and MISC.
Wall Street closed lower on Wednesday, marking the end of a multi-session rally, and Treasury yields spiked as gloomy data and downbeat corporate outlooks tossed cold water on investor risk appetite.
All three major U.S. stock indexes lost ground, while the benchmark Treasury yield shot up to touch a new 14-year high.
“It’s partly a pause after the rally, some concern over higher-than-expected inflation in great Britain, and some companies expressing caution about the outlook going forward,” Reuters quoted Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia saying. “The market is taking a breather.”
Market participants balanced a string of mixed company earnings, notably from Procter & Gamble , Travelers Companies Inc (TRV.N), and Baker Hughes Co (BKR.O), against ongoing concerns over whether central bank interest rate hikes to contain inflation could push the global economy into contraction.
“The market is still unsure as to when the Fed is going to recognize what they’ve done to date is beginning to take effect,” said David Keator, partner at the Keator Group, a wealth management firm in Lenox, Massachusetts. “The Fed is taking its mandate of tackling inflation seriously, but there’s been chatter of tightening too much.”
The Dow Jones Industrial Average (.DJI) fell 99.99 points, or 0.33%, to 30,423.81, the S&P 500 (.SPX) lost 24.82 points, or 0.67%, to 3,695.16 and the Nasdaq Composite (.IXIC) dropped 91.89 points, or 0.85%, to 10,680.51.
Data showing UK inflation hitting 10.1% in September pushed European stocks to break their recent winning streak.
The pan-European STOXX 600 index (.STOXX) lost 0.53% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS) shed 0.89%.
