MONEY MASTER

The US-Iran peace deal has put the spotlight back on one of the world’s most critical energy chokepoints, the  Strait of Hormuz  with major implications for global markets, inflation, and trade flows. Why the Strait of Hormuz Is So Important The Strait of Hormuz is not just another shipping route: Handles  ~20% of global oil and LNG supply Key exporters: Saudi Arabia, UAE, Iraq, Qatar, Iran Majority of shipments  flow to Asia This single chokepoint is the backbone of global energy trade. War Impact: Supply Shock and Price Surge Since the conflict began: Ship traffic plunged from  ~135 to fewer than 10 vessels per day Oil producers were forced to  cut output due to storage constraints Oil prices surged due to  supply disruption fears This triggered  global inflation pressure  and market volatility. What the Peace Deal Changes The interim agreement includes: Ceasefire between US and Iran Plan to  reopen the Strait “immediately” after signi...

Market  Snapshot US  equity  futures  moved  lower  Thursday  morning  as  rising  oil  prices  and  renewed  trade  tensions  weighed  on  investor  sentiment . Futures  indicated  a  cautious  start  to  the  session: Nasdaq 100  futures:   -0.45% S& P 500  futures:   -0.49% Dow  futures:   -0.61% The  decline  comes  as  Brent  crude  prices  surged ,  reflecting  ongoing  concerns  about  supply  disruptions  linked  to  the  Iran  conflict  and  tensions  in  the  Strait  of  Hormuz . Investors  are  also  digesting  new  trade  investigations  launched  by  Washington ,  which  could  lead  to  the  reinstatement  of...

Quick Summary Wall Street rebounded , led by AMD’s 8.8% surge on a major AI chip deal with Meta FBM KLCI slipped 0.23% , ending a four-day winning streak Malaysia’s reserves hit US$127.9 billion , highest since 2014 PM Anwar says Malaysia  won’t rush decisions  after US tariff reversal Wall Street Recap: AI Optimism Returns US markets bounced back as investors viewed Monday’s AI selloff as overdone. Nasdaq:  +1.04% S&P 500:  +0.77% Dow Jones:  +0.76% The rally was driven by: Advanced Micro Devices  (AMD)  +8.8% Following a massive AI GPU order from  Meta Platforms Intel  +5.7% After investing US$350 million in AI chip startup SambaNova IBM  and  Salesforce  also rebounded Precious metals were mixed amid tariff and geopolitical tensions: Gold futures:  -0.7% to US$5,186 Silver futures:  +1% Bursa Malaysia: Mild Profit-Taking FBM KLCI:  1,754.01 (-0.23%) Top gainer:   Petronas Dagangan Bhd  (PETDAG) ...

US tariff uncertainty will likely remain a  key market overhang , even after the  Supreme Court of the United States struck down tariffs imposed under the IEEPA, according to Malaysian research houses. The reason? President  Donald Trump  has already reintroduced global tariffs under a different legal channel. What Changed — And What Didn’t After the court ruled against tariffs imposed under the  International Emergency Economic Powers Act (IEEPA) , Trump announced: 10% global tariffs Plan to raise them to  15%  under  Section 122 of the 1974 Trade Act Valid for  150 days , unless Congress approves an extension Key issue: Although legally different,  protectionism remains intact . Public Investment Bank noted Trump is unlikely to retreat, as tariffs are central to his foreign policy strategy. Kenanga Investment Bank added: New tariffs are capped at 15% But US officials suggest tariff revenue levels will remain broadly unchanged Meaning m...

Quick Summary UK–China ties reset after years of strain US$15b AstraZeneca investment anchors cooperation Trade, visas, and security collaboration announced Human rights and espionage concerns remain unresolved Britain and China signalled a  reset in diplomatic and economic ties  as Prime Minister  Keir Starmer  and President  Xi Jinping  pledged closer cooperation, anchored by a  US$15 billion investment by  AstraZeneca  in China. What Happened During Starmer’s  four-day visit to China  — the first by a UK prime minister in eight years — the two leaders spent nearly  three hours  together in Beijing, holding formal talks and a working lunch at the  Great Hall of the People . Both sides described the meeting as  warm and constructive , agreeing to rebuild ties that have suffered years of strain. Why It Matters AstraZeneca’s US$15 billion China investment  was highlighted as proof of mutual economic benefit B...

  What happened US President  Donald Trump  threatened to raise tariffs on South Korean goods to  25% , accusing Seoul’s legislature of failing to formalise a trade deal reached last year. The higher tariffs would apply to  autos, pharmaceuticals, lumber and other goods , up from the current  15% levy . The warning was issued via social media and follows delays in South Korea’s parliament passing a  “special law on strategic investment with the US” , which would legally underpin Seoul’s investment commitments under the bilateral deal. Why this matters South Korea is  highly exposed to the US market , with America accounting for  over 17% of total exports (US$122.9 billion)  last year. Any tariff hike would directly affect major exporters such as  Hyundai Motor , which shipped  1.1 million vehicles  to the US in 2024. While Trump has often  walked back tariff threats , Bloomberg data show  about 27% of such threat...

Market Overview Malaysia is expected to  keep its benchmark interest rate unchanged  at its first policy meeting of the year, as  strong economic growth and subdued inflation  give policymakers room to remain patient amid rising global uncertainty. According to a Bloomberg survey, all economists expect  Bank Negara Malaysia  to hold the  overnight policy rate (OPR) at 2.75% , following a single 25-basis-point cut in July 2025. Why BNM Can Afford to Hold Malaysia’s economy ended 2025 on solid footing, outperforming earlier concerns around external shocks. Key supports include: Stronger-than-expected economic growth  in the second half of 2025 Record-high exports  last year, despite fears of US tariff-driven slowdowns Inflation at a five-year low of 1.4% , well below the central bank’s comfort range Together, these factors reduce the urgency for further policy easing. External Risks Are Rising Looking ahead, policymakers remain cautious. Malays...

US President Donald Trump and Chinese President Xi Jinping held their first conversation since last month’s tariff truce, covering a wide slate of geopolitical and economic issues — from trade and Taiwan to Russia’s war in Ukraine — while Trump confirmed plans to visit Beijing in April. Trump described the call as “very good,” saying both sides discussed agricultural purchases, including soybeans, and stepped-up cooperation to curb illegal fentanyl shipments. He added that he invited Xi for a state visit to the US next year. But Trump’s public readout avoided the topic that Beijing highlighted most: Taiwan. According to China’s Foreign Ministry, Xi stressed that the island’s “return” is central to the post-World War II order and urged the US to maintain the positive momentum gained after their October meeting in South Korea. Beijing Pushes Taiwan Issue; US Stays Silent Xi’s remarks came as tensions rise between China and Japan, a key US ally, following comments by Japan’s new Prime Min...