Bursa Malaysia rallies as oil prices fall after US midterms
Bursa Malaysia rallied following the US midterm elections as oil prices dropped and expectations for a peaceful resolution in the Middle East grew. Investors are also reacting to the Democratic party's expected influence on US fiscal and regulatory policy.
Why it matters
The rally demonstrates how regional Asian markets remain highly sensitive to US political outcomes and their subsequent impact on global energy prices and interest rate expectations.
KUALA LUMPUR: Global equities are on a rally as plunging oil process following a decisive win by the Democrats at the US midterm elections accelerated hopes of an expedient end to the conflict in the Middle East.
Malaysia's stock market rallied alongside its regional peers, with the benchmark FBM KLCI rising 6.72 points to 1,623.28 at the opening.
Crude oil prices dove overnight as a Congress controlled by the Democrats is expected to push for a peaceful resolution with Iran. Brent crude futures for January delivery dropped 8.7% overnight to a two-month low of US$94.62 a barrel.
According to AmBank Research, the Democrats are also expected to limit the scope of further US tax cuts and additional government spending, easing concerns over higher federal borrowings and additional US Treasury supply.
Headlinne story · 5 newsrooms
Oil Prices Drop Sharply Following US Midterm Elections
What every outlet reported, where they differ, and how each framed it →
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5 other newsrooms covered this event. We read each version separately.
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