KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Quick Market Summary
US stock futures slid sharply as trade tensions between the US and Europe escalated.
Risk-off sentiment pushed gold and silver to record highs, while Bitcoin retreated.
Investors are bracing for renewed geopolitical and trade-driven volatility.
US Futures: Risk-Off Mode
Dow futures: -400 pts (-0.9%)
S&P 500 futures: -1.0%
Nasdaq-100 futures: -1.1%
Futures weakness comes ahead of Tuesday’s reopening after the Martin Luther King Jr. Day holiday.
Key point: US equities face renewed pressure after two straight weeks of losses.
Trade Tensions Escalate: Greenland in Focus
Donald Trump threatened new tariffs on Europe if Denmark refuses to sell Greenland to the US.
10% tariffs on imports from eight European countries effective Feb 1.
Tariffs could rise to 25% by June 1 if no agreement is reached.
Countries affected include Denmark, UK, France, and Germany.
Key point: Trade risks are re-emerging as a major global market headwind.
Safe Havens Surge
Gold: Surged above US$4,670/oz (record high)
Silver: Topped US$94/oz (new high)
Investors are rotating into hard assets amid geopolitical uncertainty.
Crypto & Oil Check
Bitcoin: Fell over 3%, trading below US$93,000
WTI crude: Slightly higher, supported by geopolitical risk premiums
Key point: Volatility is spreading across asset classes.
Europe’s Response: Retaliation on the Table
EU considering US$93bn in retaliatory tariffs.
Discussions include activating a so-called “trade bazooka” against economic coercion.
For now, Europe appears to prefer diplomacy over escalation.
Bigger Risk: Capital Flows, Not Just Trade
Analysts warn the real threat lies beyond tariffs.
Europe is the largest financier of US deficits, holding massive US bonds and equities.
“Weaponizing capital flows would strike at the plumbing of global markets.”— Stephen Innes, SPI Asset Management
Key point: Any move against US capital markets could dwarf the impact of tariffs.
FX Market Reaction
Euro: +0.3% vs USD
US Dollar Index (DXY): -0.3%
Strategists note the USD is back on the defensive, but large-scale selling of US Treasuries remains unlikely due to self-inflicted economic damage risks.
Investor Takeaway
Geopolitical risk is back in the driver’s seat
Safe-haven assets outperforming
Equities and crypto facing near-term volatility
Watch closely for policy signals at Davos and any EU retaliation developments
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