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.
Government Data Shock
President Trump fired top BLS official Erika McEntarfer after Friday’s weak jobs report, raising alarm bells on Wall Street. Investors fear politicization of economic data may erode trust in inflation and labor stats — long considered the bedrock of U.S. markets.
🔥 “Are we becoming like Turkey or Argentina?”– Alejandra Grindal, Ned Davis Research
Market Impact So Far
S&P 500 jumped +1.5% on Monday as traders stayed focused on Fed rate cut bets.
But economists warn the real damage could be long-term: higher borrowing costs, weaker dollar, and fading investor confidence in Treasuries and TIPS.
Data Integrity in Focus
JPMorgan calls it a “threat to market trust” on par with Fed interference.
UBS warns it could accelerate the dollar’s decline as a global reserve currency.
Private data players like PriceStats and Carlyle’s alt-data tools may gain traction — but can’t fully replace decades of BLS history.
Credibility at Risk
$2.1T in TIPS (Treasury Inflation-Protected Securities) rely on BLS inflation data.
Investors now fear future reports could be skewed to meet political narratives.
McEntarfer’s removal came after big downward revisions to May and June jobs — totaling 258,000 fewer jobs than initially reported.
What Wall Street Is Watching
No replacement yet named for McEntarfer.
Kevin Hassett (NEC): “Trump wants more reliable and transparent data.”
Economists fear this signals deeper control of the data stream, not reform.
Takeaway
The U.S. government’s economic data has always been Wall Street’s North Star. But this latest shake-up could dim its shine. If trust erodes further, expect markets to price in greater uncertainty — and demand a higher premium for U.S. assets.
Risks Ahead
Rising skepticism toward U.S. labor and inflation data
Higher yields demanded on Treasuries if confidence dips
Fed, markets, and global investors may drift toward alternative data — but with caution
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