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.
The interest rate gap between the US and eurozone is set to widen, presenting significant challenges for President-elect Donald Trump’s trade ambitions . While the US economy demonstrates resilience, Europe’s struggles with weak growth and higher urgency for rate cuts could further strengthen the US dollar , making it harder to boost exports. Key Highlights : US-Euro Rate Divergence : The Federal Reserve and European Central Bank (ECB) are both cutting rates, but Europe’s economic struggles mean more aggressive easing is expected from the ECB. The US dollar has already strengthened 5% against the euro this year, with the rate gap poised to exceed 2 percentage points in 2025. Trump’s Trade Policy Pressure : A stronger dollar undermines US export competitiveness, clashing with Trump’s focus on boosting trade . Tariffs aimed at Europe and other trade partners could exacerbate inflation, potentially fo...