The local market is expected to rebound, driven by a strong US jobs report and positive sentiment. Technology stocks may outperform, following the Nasdaq’s gains. Investors will focus on US inflation data and FOMC minutes, while Chinese stimulus measures and Fed rate cut expectations also influence market movements.
“We expect the local bourse to stage a rebound following the expectation-defying jobs report in the US. Likewise, the lower liners may follow a similar pattern in tandem with the positive sentiment from the major index.
“The robust jobs report builds a case for a smaller Fed rate cut in November, propelling the dollar index to the highest level since August. Meanwhile, investors will be assessing the impact of stimulus measures from the re-opening of Chinese markets today.
“Sector-wise, we expect the technology sector to outperform, tracking the Nasdaq index on Friday. For the week ahead, the market will focus closely on the US inflation data and the FOMC minutes’ release on Thursday for further clues on the Federal Reserve’s rate decision moving forward,” says Rakuten
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