KUALA LUMPUR: The FBM KLCI ticked lower in early Wednesday trading amid ongoing debate over whether the US Federal Reserve will embark on aggressive monetary easing.

Overnight, Fed chairman Jerome Powell pushed back against US President Donald Trump's calls for a rate cut, saying the central bank was "insulated from short-term political pressures".

At 9.05am, the FBM KLCI was down 1.97 points to 1,674.64. Trading volume was 74.32 million shares valued at RM32.99mil. Decliners beat gainers 90 to 75 while 168 counters were unchanged.

Kenanga research said in its technical outlook that the local benchmark index appears to have entered a consolidation phase on profit-taking activities after last week's rally. 

"Nonetheless, the underlying trend of the index remains bullish following the break above its 100-day SMA. 

"From here, resistances can be found at 1,690 (R1). A break above should see the index trend higher towards 1,730 (R2). Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2)," it said.

Grabbing investors' interest, VS Industry rose four sen to RM1.16 as the top active counter following its earnings announcement yesterday.

Other stocks seeing notable price action included Yinson, which rose 11 sen to RM6.28 and HSL, which gained four sen to RM1.39.

Heavyweights leading the KLCI lower were Tenaga shedding eight sen to RM13.92, Press Metal losing three sen to RM6.02 and RHB dropping two sen to RM5.56.

On the other end of the spectrum, Petronas Dagangan rose 10 sen to RM25.60 and Hong Leong Bank added eight sen to RM19.08

Regional markets were seen pulling back amid the speculation over US interest rates while investors practised caution ahead of the G20 Summit this Friday.

Japan's Nikkei Index was down 0.3% while South Korea's Kospi Index lost 0.1% and Australia's ASX200 Index shed 0.1%.

Meanwhile, oil prices rose on US inventories falling more than expected.

Brent crude was up 1.4% at US$65.97 a barrel and US crude was at US$58.97 a barrel, up 2% from their last settlement, Reuters data showed.