Bursa Malaysia slips on higher US inflation report

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KUALA LUMPUR: Bursa Malaysia could face further uncertainty as Wall Street’s reaction to recent US inflationary data was mixed.

The US consumer price index for August rose a higher-than-expected 3.7% due to a surge in gasoline prices, while the core inflation was 4.3%, also above predictions.

Nevertheless, investors have continued to look ahead to a further gauge of inflation, the producers price index, which will be released later today, for more clues on the Federal Reserve’s next interest rate decision.

At present, the CME FedWatch Tool shows traders anticipating a 97% chance the central bank will hold rates in September, and 56.8% odds it will also pause its rate hike in November.

At 9am, the benchmark FBM KLCI was down 4.32 points to 1,449.22 as investors reacted negatively to the overnight US inflation report.

Maybank, whose dividend payout went ex today, was up eight sen to RM8.91 while Public Bank rose one sen to RM4.15 and Hong Leong Bank dropped 10 sen to RM19.72.

PETRONAS Gas fell eight sen to RM17.06, Press Metal slid three sne to RM.489 and IOI dropped four sen to RM4.05.