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...
European auto shares tumbled Monday even after the U.S. and European Union agreed on a new trade framework that slashes threatened tariffs on EU goods.
The deal, announced Sunday in Scotland, reduces import duties on European automobiles from a potential 30% to 15%. While the cut avoids a full-scale trade war, the market response was anything but celebratory.
Auto Stocks Take a Hit
Volkswagen (VWAGY) dropped 2.9%
BMW slid 3.2%
Mercedes-Benz (MBGYY) fell 2.4%
U.S.-listed Stellantis (STLA) sank 5.3%
Ford (F) and GM (GM) eased 1.1% and 0.3%, respectively
The declines came despite European industry leaders calling the agreement a “relief.” German Automotive Association President Hildegard Müller said the framework prevented “further escalation” but warned the 15% levy would still cost German automakers billions annually.
Investor Sentiment: Relief or Reality Check?
The muted market reaction suggests investors were hoping for more favorable terms—or had already priced in tariff cuts after the U.S.-Japan deal last week. The European Automobile Manufacturers’ Association added that while the deal eases uncertainty, higher tariffs on cars and parts will continue to drag on both EU and U.S. industries.
Next Stop: Mexico and South Korea
With the EU deal now set, attention shifts to trade talks with Mexico and South Korea, critical to U.S. automakers’ supply chains. A 15% tariff would be far lower than the worst-case scenarios management teams had been bracing for. GM alone had projected a $4–$5 billion gross tariff impact for 2025.
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