KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
The global market is on high alert as President Donald Trump prepares to announce sweeping new tariffs—potentially as early as Tuesday evening—in a move dubbed “Liberation Day.” With global trade, inflation, and market sentiment hanging in the balance, the implications could be massive.
Key Developments to Watch
- Trump’s Tariff Playbook Expands:Expected to roll out “country-based tariffs” and possibly new sector-specific tariffs, the plan may impact nearly all U.S. trading partners, with potential tariff rates as high as 20%.
Market Reactions So Far:
Global stock indexes in Europe and Asia dropped, reacting to trade war fears.
Dow Jones and S&P 500 eked out gains, but volatility remains elevated.
Senate opposition is growing, with some Republicans signaling efforts to block tariffs on allies like Canada.
China, Japan, and South Korea have reacted by tightening free trade ties, while Canada and the EU are preparing retaliatory tariffs, further escalating trade tensions.
📉 Economic Fallout: What Analysts Say
Goldman Sachs has raised the U.S. recession probability to 35%, citing a weaker growth outlook, fragile business confidence, and inflation pressures.
Global impact could exceed $1.4 trillion, according to Aston University, especially if countries respond with 25% reciprocal tariffs.
In a global trade war scenario, the U.S. would suffer the most from inflation, while Canada and Mexico would face GDP drops of up to 7%.
💡 Which Sectors May Withstand the Storm?
Analysts from Evercore and others highlight defensive sectors and companies with strong pricing power or low exposure to international supply chains as potential hedges:
✅ Consumer Staples
Keurig Dr Pepper (KDP)
Monster Beverage (MNST)
Clorox (CLX)
Kimberly-Clark (KMB)
Church & Dwight (CHD)
✅ Healthcare
Eli Lilly (LLY)
AbbVie (ABBV)
Johnson & Johnson (JNJ)
Gilead Sciences (GILD)
✅ Entertainment & Streaming
Netflix (NFLX)
Spotify (SPOT) – Low-cost subscription model, minimal supply chain exposure
✅ Utilities & Infrastructure
Duke Energy (DUK)
American Water Works (AWK)
Public Service Enterprise Group (PEG)
American Tower (AMT)
Chemicals with Global Footprints
Linde (LIN)
Air Products & Chemicals (APD) – Localized production reduces tariff impact
Strategic Takeaways
Investors should brace for volatility as Trump’s next move may redefine global trade flows.
Recession risks and inflation are real if retaliatory measures escalate.
Portfolio diversification and defensive plays in consumer staples, healthcare, and utilities may serve as key hedging strategies.
Article Summary:
President Trump’s “Liberation Day” tariff announcement may target nearly all U.S. trading partners with up to 20% tariffs.
Global markets are reacting with volatility, and countries like China, the EU, and Canada are preparing retaliatory actions.
Goldman Sachs raises U.S. recession odds to 35%, with analysts warning of a $1.4 trillion global hit in a worst-case scenario.
Defensive sectors and companies with limited global exposure are seen as the best hedges against the impact.
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