NEW YORK, Aug 8 (Reuters) - The Standard & Poor's 500 just barely extended a streak of gains to a fourth day on Wednesday, ending above 1,400 in another thinly traded session.
Expectations for stimulus from the European Central Bank and the U.S. Federal Reserve triggered the recent gains, but investors found little reason to keep pushing stocks higher after driving the market to three-month highs.
The FBM KLCI closed higher on Wednesday but its gains were capped as regional markets mostly paused while European markets retreated.
On the local front, Fitch Ratings said Malaysia faced rising negative fiscal pressures that may eventually offset existing credit strengths unless structural weaknesses in the public finances are addressed. In a report published on Wednesday, Fitch said Malaysia's trade openness and existing relatively high public debt stock would leave its credit profile exposed to a potentially sharp increase in public debt ratios in the event of an interest rate or growth shock, although this is not the agency's base case.
FKLI opened at 1639 yesterday and closed lower at 1635. Immediate Resistance was expected around 1645 yesterday.
FCPO related news
Malaysian crude palm oil touched its lowest in more than a week on Tuesday, as traders priced in wetter weather in the U.S. Midwest that eased concerns about further damage to new-crop oilseed supplies. (Reuters)
U.S. corn and soybean futures reversed course to end lower on Tuesday as investors took profits on updated weather forecasts for more rainfall in the Midwest farm belt, and on selling ahead of Friday's key government crop report detailing drought damage. Temperatures are expected to be cooler late this week but may return to heat next week.
Some of the late-planted U.S soybean crop would benefit from the late summer turn to improved weather conditions. However, the ratings for each remained the worst since 1988 as the heat and dryness largely affected crop prospects. Tight global supplies mean soybean futures contracts have limited potential to fall up to January 2013 although they face temporary selling pressure after touching record levels, Hamburg-based oilseed analysts Oil World said on Tuesday. Oil prices jumped to a 12-week peak on Tuesday as falling North Sea output, support for more bond buying by the U.S. Federal Reserve and Middle East tensions lifted crude futures to a third straight higher settlement.
With the market travelling sideways for at least 4 trading days, this is an indication of forthcoming explosive breakout which is likely to be downside . To achieve this, the benchmark August need to breach below previous low or major support level around 2,880 level. FCPO October contract closed sharply lower yesterday at 2,863.
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