KUALA LUMPUR (Aug 1): The FBM KLCI extended its loss this mnorning tracking the overnight fall at Wall Street.

At 9,05am, the FBM KLCI fell 4.61 points to 1,630.26.

The early decliners included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, PPB Group Bhd, Fraser & Neave Holdings Bhd, Hong Leong Bank Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Financial Group Bhd, Public Bank Bhd, Hap Seng Consolidated Bhd and MISC Bhd.

A sell-off in U.S. stocks is poised to extend to Asia after Chairman Jerome Powell dented hopes the Federal Reserve is poised to continue easing after delivering the first interest-rate cut in over a decade. The dollar rose with two-year U.S. Treasury yields, according to Bloomberg.

Japanese, Australian and Hong Kong futures pointed to losses, while U.S. contracts slid in early Asia trading after the S&P 500 Index closed 1.1% lower. Powell said the quarter-point cut amounted to a “mid-term policy adjustment,” fueling speculation the central bank is not necessarily at the start of an easing cycle. The S&P 500 had fallen as much as 1.8% intraday after the Fed chairman said the Fed hasn’t ruled out further cuts. President Donald Trump said in a tweet “Powell let us down” with the size of the rate cut, it said.

CGSCIMB Retail Research said the FBMKLCI index shrank another 7.8 points yesterday in tandem with the weaker stocks in Asia as investors awaited the US Fed interest rate decision.

“US Fed Chairman Jerome Powell delivered the first quarter-point interest rate cut in over a decade but disappointed hopes for an aggressive easing cycle, which could dampen the stock-market sentiment across the globe today.

“Resistance: 1,647 & 1,660. Support: 1,633 & 1,620,” it said.

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