KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Asian markets opened cautiously Thursday, following a volatile night on Wall Street that saw traders react sharply to political noise from the White House.
The Spark: Powell in the Crosshairs
Markets reeled briefly after reports surfaced that President Trump might remove Fed Chair Jerome Powell. Though Trump later walked back the threat — saying he's "not planning on doing anything" — the damage was done.
"Immediate crisis may have passed, but the saga isn't over," said JPMorgan’s Michael Feroli.
Global Market Snapshot:
S&P 500 futures: -0.2% (after a 0.3% gain overnight)
Japan & South Korea equities: Down
MSCI Asia index: Flat
US 10Y yield: +1bps to 4.46%
Dollar Index: +0.1% (after softening Wednesday)
The Bigger Risk
Analysts warn that if Trump does follow through, markets could face:
USD drop of 3–4%
30–40bps Treasury yield spike
Global confidence shock
Deutsche Bank’s George Saravelos: Firing Powell is an underpriced risk that could trigger a selloff across currencies and bonds.
Wall Street Fights Back
Top banking execs rally behind Powell:
Jamie Dimon (JPM): “Fed independence is absolutely critical.”
Brian Moynihan (BofA): “It was set up to be independent.”
David Solomon (Goldman Sachs): Joined chorus urging stability.
Asia Holds Breath
Asian traders are torn between Powell uncertainty and new signs of a cooler tone on tariffs. Trump is reportedly seeking a summit with Xi Jinping, while prepping letters to 150 countries outlining possible 10–15% tariffs.
MoneyMaster Take:
Market jitters aren’t just about Powell — they’re about trust. Investors need to believe in central bank stability, especially in a high-rate, high-debt world.
A Powell ouster would break norms — something markets hate.
Smart money stays nimble: Watch DXY, 10Y yields, and tech leadership for clues on investor mood.
Smart Investor Moves:
Reduce exposure to overbought USD and Treasuries if Powell risks escalate.
Stay overweight in resilient growth sectors (AI, tech) with less sensitivity to rate shifts.
Hedge volatility with options or gold — Powell uncertainty = short-term chaos risk.
Bottom Line:
Markets may have dodged a bullet for now — but with Trump’s unpredictability and Powell in the headlines, the Fed’s future could become the most important macro variable of Q3.
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