KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
EU Concerns Over U.S. Embrace of Crypto Assets and Its Potential Impact on Europe's Financial Stability
Eurozone finance ministers expressed concerns that the U.S. government’s embrace of cryptocurrencies could pose risks to Europe's monetary sovereignty and financial stability. Their worries come after President Trump signed an executive order to create a strategic reserve of cryptocurrencies using tokens already owned by the U.S. government, signaling a shift in policy from the previous administration.
Key Takeaways:
Policy Shift in the U.S.: The U.S. administration’s new stance on cryptocurrencies, especially dollar-denominated stablecoins, has sparked concerns in Europe. Trump’s move to embrace cryptocurrencies as part of the U.S. financial system contrasts with past U.S. policies, raising alarms about the impact on European financial stability.
Impact on Europe’s Monetary Sovereignty: Paschal Donohoe, Chairman of the Eurogroup, highlighted that such developments in the U.S. could directly affect Europe’s autonomy and the resilience of the euro. The creation of a digital euro by the European Central Bank (ECB) has become more critical to ensure Europe stays competitive in the digital currency space.
Concerns Over Tech Giants: Pierre Gramegna, head of the European Stability Mechanism, warned that the U.S. policy could encourage big tech companies to relaunch plans for their own digital payment systems. This could lead to the use of dollar-denominated stablecoins in global payments, potentially undermining the euro and disrupting the financial stability of the eurozone.
Digital Euro Initiative:
The ECB has been working on creating a digital euro since 2020, following Facebook’s initial announcement to launch its own digital currency, Libra (later renamed Diem). Although the Libra project eventually dissolved in 2022, Gramegna emphasized that the U.S. shift could reignite similar initiatives, especially from foreign and U.S. tech giants, raising concerns about the eurozone’s financial sovereignty.
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