KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Zurich equities stumble as Trump’s tariff blow triggers risk-off sentiment
The Swiss equity market reopened to heavy selling pressure Monday after a long weekend, reacting sharply to a surprise 39% export tariff imposed by US President Donald Trump. The Swiss Market Index (SMI) tumbled 1.4% to 11,665.55, trimming its year-to-date gain to a mere 0.6% — effectively erasing almost all of 2025’s performance.
Tariff Fears Hit Investor Confidence
Swiss exporters were blindsided as the market priced in Trump’s aggressive trade measures — particularly damaging for the country’s export-reliant pharmaceuticals and precision goods sectors. Pharma giants Novartis and Roche, which together make up nearly 30% of the SMI, declined 1.2% and 2.1% respectively, reflecting investor fears over tariff-exposed profit margins.
Analysts flagged uncertainty over whether future levies might target drug exports, especially after Trump sent letters to major drugmakers demanding lower Medicaid pricing. With drug policy and trade rhetoric now intertwined, sentiment remains fragile.
Franc’s Safe-Haven Role Faces a Twist
Despite its traditional role as a safe-haven currency, the Swiss franc weakened for the second consecutive session, down 0.3% vs. the euro after a 0.5% slide on Friday — its sharpest fall since May. The weakening franc could cushion earnings for exporters but also reflects capital outflows amid rising global volatility.
“Visibility on tariffs, notably on what will apply further down the road on pharmaceuticals, is a real problem,” noted Arthur Jurus of Oddo’s private wealth management.
Sector Snapshot: Broad-Based Sell-Off
Logitech International plunged 3.65%, reflecting fears over hardware supply chain disruption.
UBS Group dropped 2.86%, as global financials retreated on renewed macro risks.
Broader European equities also posted their steepest losses since April, highlighting contagion risks across the continent’s export-sensitive sectors.
Investor Outlook: Caution Ahead
While defensive characteristics of the Swiss market may provide some buffer, headline risk from US trade policies remains elevated. With the Swiss cabinet convening an emergency meeting and Washington showing no signs of softening its stance, analysts warn of a potentially prolonged period of volatility.
Investors are advised to monitor:
Updates from US-Swiss trade talks
Potential pharma tariff escalation
Swiss National Bank’s policy stance if deflationary pressure intensifies
Bottom Line: Trump’s trade shock has flipped Switzerland’s 2025 market story from resilience to risk. Investors may need to recalibrate exposure to Swiss multinationals until policy clarity improves.
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