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 27): The FBM KLCI rose 11.2 points or 0.6% to close at 1,863.47 today as Malaysian stocks took cue from US equities' firm performance overnight after US government bond or Treasury yields eased below 3%.
At Bursa Malaysia today, nearly all indices closed in positive territory at 5pm. The small-cap index finished 67.66 points or 0.47% up at 14,545.46 points.
“It wasn’t a surprise. There was a nice rally of 1% in US stocks last night that gave a bit of inspiration to stocks in this region of the world," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com today.
“This was because the impact of rising yields in the US is fading off," Pong said. CNBC reported that US government debt yield slipped on Thursday as a fresh wave of buying pressured the 10-year Treasury note rate to under 3 percent. It was reported that the yield on the benchmark 10-year Treasury note was lower at around 2.998 percent at 1:07 pm ET.
CNBC reported that markets around the globe have been keeping a close eye on the US bond market as rising Treasury yields put investors on edge. It was reported that on Tuesday, the yield on the 10-year Treasury note topped 3 percent, the first time it has done this in more than four years, and extended gains on Wednesday.
Today, Asian stocks closed firmer. Japan’s Nikkei 225 and South Korea’s Kospi were up 0.66% and 0.68% respectively.
In China the Shanghai Stock Exchange Composite finished 0.23% higher while Hong Kong’s Hang Seng gained 0.91%.
Source: The Edge
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