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.
Key Takeaway: Trade war fears reignite as President Trump rolls out sweeping tariffs — pressuring equities, emerging markets, and bond markets.
Wall Street pulled back from record highs on Monday as US President Donald Trump unveiled his long-anticipated tariff plans, setting off a risk-off wave across global markets.
🔻 Market Reaction:
S&P 500 dropped ~1%, led by sharp losses in tech megacaps.
Tesla (TSLA) plunged nearly 7% after Elon Musk revealed plans to launch a new political party — sparking governance concerns.
Treasury yields rose, with the curve bear-steepening amid reflation expectations.
The US dollar strengthened, while emerging market currencies sold off sharply.
What Did Trump Announce?
New tariffs, effective August 1, include:
25% on goods from Japan, South Korea, Malaysia, and Kazakhstan
30% on South Africa
40% on Laos and Myanmar
More countries are expected to be notified in the coming days, according to White House press secretary Karoline Leavitt.
Global Response:
The EU is not on the list yet but is rushing to secure a 10% tariff agreement before the August deadline.
China may be next in line for talks, as US Treasury Secretary Scott Bessent hinted at upcoming negotiations with his Chinese counterpart.
What It Means for Investors:
Heightened headline risk from trade tensions could fuel volatility in equities and EM FX.
Bond markets are reacting with bear-steepening, pricing in potential inflationary effects of tariffs.
Fed watch: Investors await the June FOMC minutes (due Wednesday) for insight into rate path amid tariff-related uncertainty.
Probability of Rate Cut to Zero by 2032?
Fed researchers estimate a 9% chance we revisit the zero lower bound — a reminder of lingering rate volatility.
In Other Markets:
Oil prices climbed as Saudi Arabia raised prices for Asian buyers — signaling confidence in crude demand.
Investor Insight:
With tariffs back in play, monitor:
US-China and US-EU trade talks
Fed's next move in response to inflation impact
Currency plays and short-term tech sector volatility
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