FKLI Related News

NEW YORK (Reuters) - Stocks fell on Wednesday after the Federal Reserve said in its latest statement that economic growth had stalled but indicated the pullback was likely temporary. Stocks were flat for most of the session prior to the Fed statement at the end of a two-day policy meeting. The Fed repeated its pledge to keep purchasing securities until employment improves substantially. The statement followed data that showed the economy, as measured by gross domestic product, unexpectedly contracted in the fourth quarter. Economists stressed that the 0.1 percent contraction, caused partly by a plunge in government spending and lower business inventories, is not an indicator of recession.

The S&P 500 held above 1,500, seen by technical analysts as an inflection point that will determine the overall direction in the near term. The index is on track to post its best month since October 2011 and its best January since 1997. The Dow Jones industrial average (.DJI) was down 44.00 points, or 0.32 percent, at 13,910.42. The Standard & Poor's 500 Index (.SPX) was down 5.88 points, or 0.39 percent, at 1,501.96. The Nasdaq Composite Index (.IXIC) was down 11.35 points, or 0.36 percent, at 3,142.31. Giving the market extra support, private sector employment topped forecasts with the ADP National Employment report showing 192,000 jobs were added in January, higher than the 165,000 expectation.

The euro climbed to a 14-month high and gold rallied on Wednesday after the Federal Reserve left its monthly $85 billion bond-buying stimulus plan in place. Commodities rallied on Wednesday, with oil, corn and soybean prices hitting multi-week highs, propelled by encouraging economic data from Europe, a weak dollar and concerns about tighter supplies of raw materials. Brent crude touched a three-month high on Wednesday after better-than-expected economic data out of Europe spurred optimism about the global economy before oil pared gains with surprisingly weak U.S. growth numbers.

Stocks on Bursa Malaysia closed lower yesterday due to heavy selling pressure late yesterday morning  as the local market sentiment was dragged down by speculative market talks that the 13^th general election would be held soon. FKLI spot month contract opened slightly higher this morning at 1626.5. Today’s Support and Resistance for January contract is located around 1,610 and 1,634 respectively.