KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The latest trade pact between the U.S. and European Union highlights a growing trend of higher tariffs, vague investment pledges, and limited clarity. Analysts are already comparing the deal to Trump’s earlier Phase One agreement with China, where purchase commitments fell short of targets.
Under the new deal, the EU agreed to a 15% tariff on key goods, along with $600 billion in investments and $750 billion in U.S. energy purchases by 2028. While the agreement lowers auto tariffs from 25% to 15% and sets a 15% rate for pharmaceuticals and semiconductors, steel, aluminum, and copper still face 50% tariffs.
Markets initially reacted positively, seeing reduced risks of further retaliation. But skepticism remains. Experts doubt the EU can meet the massive energy purchase target, noting U.S. fossil fuel exports to Europe were only $78 billion last year. Investment pledges are also seen as overly ambitious.
The deal underscores Trump’s strategy: focus on select industries to bring some production back to the U.S. while maximizing tariff revenue. However, the lack of legally binding terms leaves companies facing uncertainty, especially with an August 1 tariff deadline and ongoing talks with China.
China’s tariff rate, currently around 55%, remains a critical unknown. U.S. officials are negotiating for an extension beyond the August 12 deadline and seeking a meeting between Trump and Xi Jinping.
For companies with global supply chains, the details of sector-specific tariffs — particularly on semiconductors — will determine whether it makes sense to shift production. Smaller countries are also at risk, with Trump hinting most nations could face tariffs of 15–20%, potentially higher for those without major trade agreements.
With so many unanswered questions and limited details, businesses remain in limbo, waiting to see where U.S. trade policy lands next.
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