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.
Global financial markets opened the week on a defensive footing as U.S. President Donald Trump escalated trade tensions, announcing a 30% tariff on imports from the European Union and Mexico. The reaction was swift: S&P 500 futures dropped 0.5%, and investors rotated into safe-haven assets like gold, silver, and the Japanese yen.
Market Snapshot (as of 10:32am Tokyo time)
S&P 500 Futures: -0.5%
Euro Stoxx 50 Futures: -0.6%
Topix (Japan): -0.4%
Hang Seng (HK): +0.1%
Shanghai Composite: +0.4%
Bloomberg Dollar Index: Flat
USD/JPY: 147.04 (-0.3%)
Gold: $3,360.20/oz (+0.1%)
Bitcoin: $119,004.61 (-0.1%)
Tariff Bombshell: Bluff or Real Risk?
Trump’s unexpected move comes just days after similar tariffs on Brazil, Algeria, and Canada, shaking investor confidence in U.S. trade policy stability.
“Investors shouldn’t assume this is just a bluff,” warned Brian Jacobsen of Annex Wealth Management. “A 30% tariff is punitive — and with global trade under stress, the window for retaliation or resolution is narrowing.”
Despite the volatility, markets are still pricing in some hope of reversal, as they’ve grown used to Trump’s U-turn tactics. However, the EU’s trade optimism just took a major hit, and Brussels is reportedly seeking new partnershipsin response.
Political Risk Watch: Powell in the Crosshairs
On a separate front, Trump’s administration renewed its attacks on Federal Reserve Chair Jerome Powell, questioning his stewardship and criticizing the Fed’s costly headquarters renovation.
Deutsche Bank’s George Saravelos warned:“If Trump forces Powell out, we could see a 3-4% drop in the U.S. dollar and a 30-40bps spike in Treasury yields — a major underpriced risk.”
Commodities & Crypto: Safe-Haven Surge
Gold continues its rally, notching its fourth straight day of gains.
Silver trades near 2011 highs, while Bitcoin stays above $119,000, just shy of its weekend record.
Meanwhile, energy markets and bonds remained relatively calm, as investors brace for further macroeconomic dataand corporate earnings later this week.
Key Events Ahead This Week
Chinese GDP & Trade Data — Insight into how tariffs are impacting Asia’s biggest economy.
US & EU Inflation Reports — Tariff pass-through into CPI/PPI will shape Fed expectations.
Q2 Earnings Season Begins — JPMorgan, Netflix, and Bank of America will set the tone.
Powell Watch — Any new developments around his position could trigger volatility in FX and rates.
Investment Insight
Markets are now juggling three major forces:
Geopolitical trade risk (tariffs)
Domestic political uncertainty (Fed leadership)
Corporate earnings expectations (possible disappointments)
While recent momentum pushed equities to record highs, this week will test whether investor sentiment can hold up in the face of macro headwinds. Hedging against policy risk and staying diversified across commodities, gold, and select Asia plays could be a prudent strategy.
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