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Showing posts with the label geopolitical risk

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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 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.

Asian Banks’ US$15 Billion Gulf Loan Boom Faces Risk as Iran Conflict Escalates

Asian banks’ record lending surge into the Gulf is facing a major stress test as escalating tensions involving Iran threaten broader financial instability across the Middle East. Record Lending Now Under Pressure Asian and Chinese banks extended  over US$15 billion in loans to the Middle East in 2025 , triple the previous year and the highest on record, according to Bloomberg-compiled data. Most of the financing flowed into: Saudi Arabia United Arab Emirates The region has become a key destination for Asian capital as Gulf states push forward with large-scale economic transformation and infrastructure projects. Key Point: A record US$15 billion Gulf lending boom is now at risk due to escalating geopolitical tensions. Conflict Raises Financial Uncertainty The latest escalation — involving US and Israeli missile strikes on Iran — has heightened concerns that the conflict could disrupt capital flows and reshape regional lending strategies. Economists suggest banks may: Tighten exposur...

Gold Continues to Shine as Fed Cut Bets, Geopolitical Risks Drive Demand

Gold prices remain near record highs above  US$3,670/oz , supported by expectations of US Federal Reserve rate cuts, mounting geopolitical risks, and sustained central bank demand. Year-to-date, gold has surged more than  38% , marking its strongest annual gain since 2000. Fed Policy and Labour Market Weakness Fuel Rally The rally gained momentum after  Fed Chair Jerome Powell’s dovish remarks at Jackson Hole , which raised bets for a  September rate cut . The weak August non-farm payrolls report — showing just  22,000 jobs added  and a jobless rate of  4.3%  — reinforced market conviction. CME data shows traders pricing in a  93.7% probability of a 25bps cut  next week, with a small chance of a deeper 50bps move. This has pressured the US dollar and bolstered gold’s appeal. Safe-Haven Demand Amid Rising Risks Beyond monetary policy, investors are seeking refuge in gold as  geopolitical tensions escalate : Political turmoil in Franc...

Trump Distances US From Israeli Strike in Qatar, Urges Calm Amid Rising Tensions

  Key Takeaways: President Trump said  Israel’s Prime Minister Benjamin Netanyahu  ordered the strike in Qatar, not the US. Trump assured Qatar’s Emir that such an incident “will not happen again,” signaling efforts to contain fallout with a key US ally. The strike killed  five Hamas members in Doha , including the son of a senior Hamas leader. Qatar, a  critical mediator  in Gaza ceasefire and hostage negotiations, rejected US claims of prior warning. The escalation heightens  geopolitical risk in the Gulf , with potential implications for energy markets and regional stability. US Seeks to Contain Fallout President Donald Trump said on Tuesday that the Israeli airstrike in Qatar, aimed at Hamas leaders, was not an American decision but one taken by Israel’s Benjamin Netanyahu. Trump emphasized that striking “inside Qatar, a sovereign nation and close ally of the US” undermines both American and Israeli interests, even as he reiterated support for dism...

Tech Stocks Drive Record Rally — But How Long Can the Boom Last?

Market Overview: After months of volatility and macro uncertainty, the S&P 500 and Nasdaq have surged to record highs. Tech giants, known as the Magnificent Seven — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla — have fueled the rally, adding over  $4.7 trillion  in market cap since April lows. Sector Breakdown: Tech & Communication Services:  Up 41% and 28% respectively since April. Cyclical Strength:  Industrials (+27%), Financials (+19%), and Materials (+19%) also contributed, suggesting parts of the rally are broad-based. Market Breadth Mixed: NYSE Advance-Decline line hit new highs, suggesting positive breadth. Only  50%  of S&P 500 stocks trade above their 200-day moving averages — traditionally healthy markets show  65%-80% . Equal-weight S&P 500 rose  18.7%  vs.  24%  for market-cap weighted, indicating concentrated gains. Macro Tailwinds: Fed rate cuts expected by year-end could boost rate-sens...

Asian Markets Slip While European Futures Climb: Markets Wrap

Asian stocks have taken a breather from a recent tech rally after President Trump’s executive order restricted Chinese spending in key U.S. sectors, while European futures, notably in Germany, are gaining ground amid positive political developments. Key Market Performances Winners: European Equity Futures: Germany’s benchmark index futures have risen following a strong performance by the conservative party in the federal election. Euro: The euro strengthened, reflecting improved sentiment in Europe. Strugglers: Asian Technology Stocks: Shares in mainland China and Hong Kong reversed sharply, with significant declines seen in giants like Alibaba Group and Tencent Holdings. Asian Equity Futures: Equity index futures for markets such as Australia and Hong Kong have fallen, offsetting a recent four-month high. Growth Drivers and Challenges Regulatory Pressure: President Trump’s directive for the Committee on Foreign Investment in the United States to restrict Chinese spending on technology...