KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
The global economy faces a turbulent road ahead in 2025, with risks stemming from geopolitics, trade wars, and structural challenges in major economies.
Key Challenges:
- Trade War Risks: A potential Donald Trump presidency could spark a global trade war through import tariffs of 10% to 20%, escalating to 60% for Chinese goods, risking fresh inflation and economic slowdown.
- Geopolitical Uncertainty: Conflicts in Ukraine and the Middle East add unpredictability to global energy costs and supply chains.
- Economic Disparities: While wealthy nations grapple with voter dissatisfaction over cost-of-living crises, poorer countries face their worst economic state in two decades, exacerbated by weaker trade and funding conditions.
- Debt and Spending Strains: Governments face stretched budgets due to climate action, military spending, and ageing populations, raising fears of a potential financial crisis if debt levels continue to climb unchecked.
- European Political Deadlocks: Political stagnation in Germany and France hinders efforts to address investment shortfalls and skills shortages in the eurozone.
- China’s Transition: Mounting pressure on China to shift from manufacturing dependency to boosting consumer spending poses significant challenges for the world's second-largest economy.
Outlook for 2025:
- Interest Rate Trajectory: Policymakers are banking on central banks completing their return to normal interest rate levels, but inflation and geopolitical factors could disrupt this progress.
- Currency Pressures: A stronger US dollar could divert investments away from emerging economies and increase the cost of dollar-denominated debt.
- Global Stability: The IMF warns of uncertain times, with energy costs, trade policies, and voter dissatisfaction being pivotal factors shaping economic performance.
Implications:
The year ahead demands cautious optimism, with policymakers and financial markets bracing for volatility while striving to maintain global economic stability.
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