KUALA LUMPUR, March 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the week slightly higher, in line with regional indices despite the weaker performance on Wall Street overnight. At 5 pm, the FBM KLCI rose 2.12 points or 0.14 per cent to 1,512.15 from Thursday’s close of 1,510.03. The market bellwether opened 10.08 points lower at 1,499.95, and moved between 1,493.29 and 1,516.25 throughout the day. On the broader market, gainers outpaced losers with 680 to 292, while 437 counters were unchanged, 1,009 untraded, and 13 suspended. Turnover was marginally lower at 3.24 billion units worth RM2.5 billion from 3.25 billion units worth RM2.90 billion on Thursday.
Canada and the European Union have announced retaliatory tariffs in response to Donald Trump’s latest trade measures, intensifying the global trade war.
Key Developments:
Canada’s Response: Canada has imposed 25% tariffs on about C$30 billion ($20.8 billion) worth of U.S.-made goods, including steel, aluminum, and consumer products like computers and sporting goods. This measure directly counters Trump’s tariffs aimed at revitalizing America’s steel industry. Canada matched the tariffs “dollar for dollar” but delayed implementation, offering Trump a window to avoid further economic damage.
EU Retaliation: The European Union has also retaliated with its own duties on up to €26 billion ($28.3 billion) worth of American goods. While the U.K. remains a steadfast ally of the U.S. in trade talks, the growing global trade tensions are putting pressure on transatlantic relations.
U.S. Economic Impact: Trump downplayed the risk of a recession from the tariffs but acknowledged that businesses should brace for more levies. Meanwhile, inflation concerns continue to rise as economists fear that the tariffs will push up prices for a range of goods, including food and clothing.
Other Key Economic Updates:
Inflation: U.S. consumer prices rose at the slowest pace in four months in February, offering some relief amid inflationary concerns. However, economists warn that the ongoing trade war could drive prices higher in the months ahead, putting additional strain on consumers.
Corporate Concerns: Goldman Sachs CEO David Solomon noted that Trump’s tariffs are disrupting deal-making activity, with business leaders seeking more clarity on the White House’s economic strategy. Despite uncertainty, Solomon expects mergers and capital-markets activity to pick up as the year progresses.
Looking Ahead:
The global trade war continues to heat up, with Canada and the EU stepping up their responses to U.S. tariffs. As uncertainty grows, investors are bracing for more volatility, while consumers face rising prices and potential economic slowdowns.
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