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 (May 21): The FBM KLCI fell 0.92 point on profit taking in 11th-hour volatile trade after rising earlier with Asian shares. Earlier, Reuters reported that world stocks rose on Monday after US Treasury Secretary Steven Mnuchin declared the US-China trade war "on hold" following their agreement to suspend the tariff threats that roiled global markets this year.
At Bursa Malaysia, the KLCI closed lower at 1,853.58 points at 5pm after rising to its intraday high of 1,864.94 points. The KLCI ended weaker after losses in index-linked stocks including Hong Leong Financial Group Bhd, Tenaga Nasional Bhd and CIMB Group Holdings Bhd.
Across Bursa Malaysia, volume stood at 2.78 billion shares valued at RM3.05 billion. Hong Leong Financial, Tenaga and CIMB ended among Bursa Malaysia's top decliners.
CIMB, which fell 20 sen to RM6.60 today, has been closely watched as investors evaluated the company's outlook after Malaysia Prime Minister Tun Dr Mahathir Mohamad-led Pakatan Harapan's win in the country's 14th General Election.
MIDF Amanah Investment Bank Bhd wrote in a note today: "CIMB registered the highest net money inflow of RM41.21m last week. Its share price underperformed with a 1.45% decrease against the FBM KLCI which advanced by 0.43% during the week under review. It is notable that net money inflow amidst retreating share price may indicate a buy on weakness stance among some investors."
Today, Asian equities closed higher. Japan’s Nikkei 225 was up 0.31% while South Korea’s Kospi rose 0.2%. In China, Hong Kong’s Hang Seng gained 0.6% while the Shanghai Stock Exchange Composite was 0.64% higher.
Tomorrow, Hong Kong markets will be closed for a holiday in conjunction with the birthday of the Buddha. In Malaysia, Bank Negara Malaysia is scheduled to announce its international reserves data in the afternoon.
Source: The Edge
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