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 (Jan 28): The FBM KLCI dropped 21.17 points or 1.35% today, mirroring the downtrend in regional stock markets as investor sentiment was hit by concerns over the impact of the coronavirus that originated in Wuhan, China.
The benchmark index closed the day at 1,551.64, with declining stocks topping gainers by 733 to 158 in the broader market. A total of 3.36 billion shares were traded for a total value of RM2.89 billion.
MIDF Research’s head of research Mohd Redza Abdul Rahman said concerns over the spread of the virus will result in an overreaction in markets, causing shares to retreat at a faster rate than they should.
However, he said it is too early to panic, noting that China has taken various actions to contain the spread of the virus.
“[On the plus side], this presents an opportunity for shrewd investors to look for bargains,” he told theedgemarkets.com.
The KLCI’s decline was led by Malaysia Airports Holdings Bhd (down 46 sen or 6.73% to RM6.37), Sime Darby Plantation Bhd (down 29 sen or 5.49% to RM4.99) and Petronas Chemicals Group Bhd (downl 28 sen or 4.05% to RM6.64).
Healthcare stocks bucked the trend with the healthcare index rising 5.32% to 1,435.29.
Regionally, Asian stocks extended a global selloff as the outbreak in China, which has killed 106 people and spread to several countries, fuelled concern over the damage to the world's second largest economy, Reuters said.
Japan’s Nikkei 225 index fell 0.55%, while South Korea’s Kospi plunged 3.09%. Markets in mainland China and Hong Kong remained closed for the Chinese New Year.
Source: The Edge
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