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...
Wall Street logged its worst session since April’s tariff-driven meltdown, as stocks, bonds and the US dollar sold off sharply following renewed geopolitical tensions tied to Greenland and fresh tariff threats against Europe by President Donald Trump.
The broad-based risk-off move erased year-to-date gains and reignited concerns over foreign investor confidence in US assets.
Market Snapshot
S&P 500: -2.1%, biggest drop since October, wiping out 2026 gains
Nasdaq Composite: -2.4%
Dow Jones: -1.8%
Tech megacaps index: -3.1%
Small caps: Fell but outperformed large caps for a 12th straight session
A gauge of equity volatility surged to its highest level since November, signalling a sharp repricing of risk.
What Drove the Selloff
The rout followed Trump’s escalation of disputes with European allies ahead of the World Economic Forum:
Threats of tariffs on eight European countries over Greenland
Renewed geopolitical friction raising fears of EU retaliation
Ongoing uncertainty over whether tariffs will be rolled back, with the US Supreme Court set to delay rulings on past challenges
Market participants described the move as a return of the “Sell America” trade, with global investors trimming exposure to US equities, Treasuries and the dollar.
Cross-Asset Fallout
10Y US Treasury yield: +7 bps to 4.29%, four-month high
US dollar: -0.3% vs major peers
Bitcoin: Fell below US$90,000
Gold: Jumped to a record above US$4,700/oz
Oil: Rose above US$60/bbl
Bond markets were also rattled by a continued selloff in Japanese government bonds and reports that a Danish pension fund plans to exit US Treasuries.
Investor Sentiment Shifts
Strategists warn that investors’ ability to shrug off political shocks is eroding, especially with:
Positioning still crowded in US equities
Protection against drawdowns near multi-year lows
Fund manager surveys showing “hyper-bullish” sentiment before the selloff
Some asset managers argue the reaction is appropriate given rising uncertainty, while others believe markets are still pricing in a “TACO” outcome — that Trump ultimately backs down.
What Markets Are Watching Next
Trump’s remarks at Davos for signs of escalation or compromise
Europe’s response and any hint of retaliatory action
Whether bond market stress spills further into equities
Early signals from US earnings season, which risks being overshadowed by geopolitics
Bottom Line
This was not a routine pullback. The synchronized selloff across stocks, bonds and the dollar suggests investors are demanding a higher political risk premium. While many still expect tensions to cool, markets are now far more sensitive to headlines — and volatility may remain elevated until clarity emerges from Washington and Davos.
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