KUALA LUMPUR, March 9 (Bernama) -- Bursa Malaysia closed broadly lower today in line with widespread selling across regional markets as the intensifying conflict in the Middle East dampened investor sentiment and reignited concerns over global inflation. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 43.89 points, or 2.56 per cent, to close at 1,674.17 from last Friday’s close of 1,718.06. The benchmark index, which opened 18.93 points lower at 1,699.13, moved between 1,664.07 and 1,702.77 during the day. In the broader market, losers trounced gainers 1,141 to 283, while 308 counters were unchanged, 900 untraded, and 33 suspended. Turnover expanded to 5.52 billion units worth RM5.87 billion from last Friday’s 3.71 billion units worth RM4.05 billion.
US stock futures tumbled as oil surged past US$100 per barrel, reviving stagflation fears and threatening to derail expectations for Federal Reserve rate cuts.
The renewed Middle East escalation — coupled with production cuts from major Gulf producers — is pushing energy prices sharply higher and rattling global markets.
Key Takeaways
S&P 500 futures fall 1.1% after worst weekly drop since October
Brent crude jumps 13% to US$104 per barrel
Volatility index (VIX) climbs above 30
Strategists raise probability of market “meltdown” to 35%
Inflation data this week becomes critical for rate outlook
Futures Extend Selloff
S&P 500 futures: -1.1%
Nasdaq 100 futures: -1.1%
Brent crude: +13% to US$104
Oil production cuts announced by Saudi Arabia, UAE, Kuwait, and Iraq
The spike in oil is amplifying fears that inflation could re-accelerate just as markets were hoping for easing monetary policy.
Key Point: Sustained oil above US$100 raises the risk of inflation staying higher for longer.
Stagflation Concerns Build
Investors worry that prolonged energy disruption could lead to:
Slower global growth
Higher consumer prices
Delayed rate cuts
Rising corporate costs
The Cboe Volatility Index (VIX) surged above 30 — its highest level since April — signaling heightened market anxiety.
Strategist Ed Yardeni raised the probability of a market meltdown this year to 35%, up from 20%.
Inflation Data in Focus
This week’s key releases:
Consumer Price Index (CPI)
Personal Consumption Expenditures (PCE)
While the Federal Reserve typically looks through short-term oil shocks, a prolonged energy spike increases the risk of cost pass-through to consumers.
If oil climbs toward US$120–US$140, analysts warn Gulf storage capacity could be strained, forcing shutdowns and further price spikes.
Why US Stocks Are Holding Up Better
Compared to global markets:
S&P 500 fell 2% last week
Global equities dropped 3.7%
The US is relatively insulated due to:
Greater energy self-sufficiency
Lower economic cyclicality
Stronger domestic demand
Still, markets remain vulnerable to a “super spike” in oil.
Premarket Movers
Energy majors like Chevron and Exxon extended gains
Hims & Hers Health Inc surged 45% after a reported weight-loss drug partnership
Financial stocks weakened amid credit risk concerns
Bottom Line
Markets are now trading on one key variable:
How long will oil stay above US$100?
If the conflict drags on:
Inflation risks rise
Rate cuts get pushed back
Equity volatility stays elevated
For now, investors are bracing for more turbulence — with energy prices firmly in the driver’s seat.
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