KUALA LUMPUR, March 17 (Bernama) -- Bursa Malaysia extended gains to a third consecutive session today, driven by broad-based buying across various sectors following the recent strong sell-off, in line with the performance of regional markets, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 15.66 points, or 1.04 per cent, to 1,527.81 from Friday’s close of 1,512.15. The benchmark index opened 5.43 points firmer at 1,517.58 -- its intraday low -- and peaked at 1,531.63 during the mid-morning session and maintained its momentum throughout the afternoon session. On the broader market, gainers thumped decliners 708 to 297, while 425 counters were unchanged, 994 untraded, and seven suspended. Turnover improved to 3.28 billion units worth RM2.40 billion from 3.24 billion units worth RM2.5 billion on Friday.
Donald Trump’s 25% tariffs on steel and aluminum imports went into effect today, escalating the ongoing global trade war. The move, coupled with fresh tariff threats, has sparked fresh market volatility and further tensions with Canada and the EU.
Key Highlights:
Tariff Drama: After a day of back-and-forth threats, Trump’s tariffs on steel and aluminum imports officially kicked in. This comes as Canada and the EU retaliated, with the EU planning duties on over $28 billion worth of American goods.
U.S.-Canada Tensions: Trump’s latest tariff threat was aimed at Canada, intensifying already strained trade relations. However, Trump downplayed the risk of a recession caused by the tariffs while hinting at more levies in the future.
Market Reaction: Following the tariff drama, U.S. equity markets experienced some stabilization after the chaos left traders unsure about the economic impact of Trump’s moves. However, Goldman Sachs lowered its target for the S&P 500, signaling growing concern over the U.S. economy.
Other Economic Developments:
Homebuyer Struggles: U.S. homebuyers are facing rising prices, with canceled contracts at a record high. Rising interest rates tied to inflationary pressures could further complicate the housing market.
Corporate Credit Concerns: Worries about corporate credit defaults persist, with costs to protect corporate debt against default rising to the highest levels in nearly seven months. This reflects broader market unease amid ongoing trade tensions and global economic uncertainty.
Looking Ahead:
As the U.S.-Canada trade dispute continues, the economic outlook remains uncertain. Trump’s tariffs, alongside the broader global trade war, are expected to weigh on markets, with concerns about rising interest rates and economic slowdown intensifying.
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