Wall Street's optimism vanished late Wednesday as President Trump’s sweeping new tariffs triggered a sharp selloff in U.S. equity futures and a flight to safe-haven assets, casting a shadow over global trade outlook and corporate margins. Key Market Moves Instrument Move S&P 500 Futures -3.5% Nasdaq 100 Futures -4.5% Treasury Futures Surged (Yields fell sharply) Japanese Yen Gained as safe haven AUD & NZD Bonds Rallied Tariff Summary A 10% baseline tariff on all U.S. imports. Additional tariffs on ~60 countries, with higher duties targeting China, EU, and Vietnam . Steel and aluminum imports spared from the new round but remain under existing 25% duties. “Eye-watering tariffs scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future.” — Adam Hetts, Janus Henderson Investors Sector Impact Major declines hit consumer, tech, and industrial names: Company Sector Move Nike, Gap, Lululemon Retail (Vietnam-based) -...
KUALA LUMPUR (April 23): The FBM KLCI fell 7.39 points or 0.4% while Bursa Malaysia's small-cap index dropped by a larger quantum as Asian shares faced headwinds from higher US government bond yields.
Reuters reported that the spike in oil prices has driven up both market expectations of future inflation and long-term bond yields. Yields on 10-year Treasuries are at the highest since early 2014 at 2.977 percent and again threatening the hugely important 3 percent bulwark. The last time yields neared this number in 2013 it rocked risk appetite and sent stocks sliding.
At Bursa Malaysia today, the KLCI closed at 1,880.36. Across Asia, Japan’s Nikkei 225 fell 0.33% while Hong Kong’s Hang Seng declined 0.54%.
In Malaysia, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com: “If you look at the regional market, you can see that the market is afraid of all the uncertainties that are coming up. The rise in the US 10-year note (yields) and how that will affect the equity market, the selldown in the US tech-related counters as well as the occasional tweet by US President (Donald) Trump.”
Across Bursa Malaysia, volume stood at 1.94 billion shares worth RM1.66 billion. Bursa Malaysia's small-cap index fell 252.72 points or 1.7% to close at 14,638.24.
Source: The Edge
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