Investors watch for clues

Despite the weak earnings season, the FBM KLCI appears to have found support at the 1,450-point level from the revised 2023 budget that remained expansionary with a fiscal consolidation target. — Bloomberg

PETALING JAYA: Investors will look to central banks this month for leads as sticky inflation in developed markets amid slowing growth raises concerns of stagflation more so if crude oil prices head higher driven by demand from China’s reopening.

As Jerome Powell goes to Washington to brief Congress this week, analysts say if the Federal Reserve (Fed) chair remains hawkish and raises rates by more than the consensus 25 basis points (bps) later this month, that could push the “pivot” back into 2024 and be bearish for market sentiment, as higher rates become real competition for stock returns.