KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia’s benchmark index edged higher at the close as bargain hunting emerged following Monday’s sharp sell-off, although it narrowly failed to reclaim the 1,600 level, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.83 points, or 0.24 per cent, to 1,599.58 from Monday’s close of 1,595.75. The index opened 3.18 points lower at 1,592.57, marking its intraday low, and reached an intraday high of 1,602.83 in early trading. On the broader market, decliners outnumbered gainers 751 to 331, while 499 counters were unchanged, 1,259 untraded and 10 suspended. Turnover rose to 2.86 billion units worth RM2.42 billion against Monday’s 2.49 billion units worth RM2.38 billion.
The US dollar rallied while European stocks tumbled on Tuesday after President-elect Donald Trump announced sweeping tariff plans targeting imports from Mexico, Canada, and China.
Market Impact
Currencies Under Fire
Trump’s Tariff Plan
Sweeping Tariffs Announced:
Other Market Moves
Market Impact
- The STOXX 600 fell 0.7%, led by automakers such as Volkswagen and Stellantis, which dropped between 2.6%-5%.
- The threat of tariffs on the European Union added pressure, with traders anticipating the EU could be next.
- S&P 500 futures eased 0.1%, following Monday’s 0.3% gain.
Currencies Under Fire
- The dollar surged 2.3% to 20.75 pesos and climbed 1% to C$1.4139, reflecting investor fears that Mexico would bear the brunt of Trump’s tariffs.
- Offshore yuan weakened to 7.2674 per dollar, its lowest since late July.
- The euro fell 0.1% to $1.04838, while the British pound eased 0.2% to $1.2548.
Trump’s Tariff Plan
Sweeping Tariffs Announced:
- 25% tariffs on all goods from Mexico and Canada.
- An additional 10% tariff on Chinese imports.
- The measures are aimed at combating illegal immigration and drug trafficking.
- “The dollar’s move higher makes sense as markets digest Trump’s timing,” said Sean Callow of ITC Markets.
- Analysts warn of increased uncertainty, with policy surprises likely to become routine.
Other Market Moves
- Slipped 1% to $92,781, cooling further from last week’s record high of $99,830.
- Fell to a one-week low of $2,604.99, pressured by the dollar’s strength.
- Brent crude rose 0.6% to $73.41, while WTI crude climbed 0.45% to $69.25, as investors monitored developments in a potential Israel-Hezbollah ceasefire.
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