FKLI Related News (Fri, June 7)

NEW YORK (Reuters) - U.S. stocks rose on Thursday, with the Dow swinging nearly 200 points from its session low to high and the S&P 500 recovering after hitting a key technical level in volatile trading a day before the release of the U.S. jobs report. Market volatility has increased recently and the S&P 500 has lost 3 percent since Federal Reserve Chairman Ben Bernanke's comments two weeks ago that the central bank may decide to reduce stimulus in the next few policy meetings if data shows the economy is improving. The move follows a rally for much of this year, largely on the Fed's continued stimulus actions.

The three major U.S. stock indexes finished Thursday's choppy session at their highs for the day. The session's best performers included financials and health care, with each of those S&P sector indexes ending up 1.4 percent. Economists expect the non-farm payrolls report on Friday will show job growth of 170,000 in May, slightly above April's addition of 165,000 positions. They expect the U.S. unemployment rate will remain steady at 7.5 percent. The jobs report will come one hour before U.S. stock trading begins on Friday. "Technically, the 1,600 level is an important area to hold," said Michael Sheldon, chief market strategist at RDM Financial, in Westport, Connecticut.

The pickup in market volatility over the past couple of weeks reflects investors' uncertainty over Fed policy, combined with worries about a still sluggish global economy, he said. The European Central Bank kept interest rates unchanged on Thursday and left other policy tools untouched after discussing options it could use if the euro zone's economy does not come out of recession later this year. ECB President Mario Draghi said economic conditions did not justify moves such as requiring banks to pay to leave their money with the central bank overnight.  

Oil prices rose on Thursday as Britain's largest oilfield was shut down for the second time in less than a week, and as a major U.S. refinery prepared to re-start this month. Global equities moved higher while the dollar slid against the euro and yen on Thursday as investors reduced heavy bets on the greenback on concerns that  Friday's U.S. jobs report will disappoint. Gold rose 1 percent in a late recovery on Thursday as the dollar fell sharply against the yen and the euro on fears of weak U.S. jobs data that will be released on Friday.           [Reuters]

Bursa Malaysia closed lower yesterday in cautious trading on mild profit-taking, with losses seen in selected heavyweights, dealers said.  After the ‘see-saw’ trading, the barometer index FBM KLCI fell 4.82 points to close at 1,769.6. The key index moved between 1,777.74 and 1,767.23 throughout the day. On the regional front, a dealer said most of the Asian bourses were lower yesterday on uncertainty over the US employment data to be released today. “Strong data could prompt the Federal Reserve (Fed) to tighten policy sooner rather than later while weaker data could be viewed as bullish, as it will provide more cover for the Fed to keep the stimulus in place,” he said.          [Bernama]

FKLI spot month contract opened unchanged this morning at 1,766.50. Today’s Support and Resistance for June contract is located around 1,765 and 1,775 respectively.