The market continued to decline last week and the index broke the crucial support level at 1,705 points. Weak ringgit and falling commodities prices were primary concerns. Furthermore, Bursa Malaysia was not the only market that went south, most global markets suffered the same fate, especially China. The FBM KLCI fell 3.8 per […]
The Malaysian palm oil futures recorded losses despite rebounded on Friday, hitting a two-year low, due to concerns about a trade war between China and US as well as weaker exports demand and related oil. The benchmark crude palm oil futures (FCPO) contract fell 2.31 per cent to RM2,282 on Thursday, which is RM54 lower […]
NEW YORK: World stock markets mostly climbed Friday despite rising trade tensions, with petroleum-linked shares gaining after OPEC agreed to only a modest production increase.
The Dow snapped an eight-session losing streak, with oil producers Exxon Mobil and Chevron both rising more than two percent on higher oil prices.
Ministers with the Organization of the Petroleum Exporting Countries agreed to ramp up oil production by around a million barrels a day from July.
However, some ministers acknowledged that the actual amount of additional produced will be lower than that amount. US oil prices rose nearly five percent following the agreement, with analysts saying the output increase would be smaller than expected.
The rally in oil prices also gave a lift to French giant Total and London-listed Royal Dutch Shell.
Bourses in Paris and London both rose more than one percent , while Frankfurt rose a more modest 0.5%.
The gains came as the European Union slapped revenge tariffs on iconic US products including bourbon, jeans and motorcycles in its opening salvo in a trade war with President Donald Trump.
Customs agents across Europe's colossal market of 500 million people will now impose the duty, hiking prices on US-made products in supermarkets and across factory floors.
Trump wasted little time in responding, threatening on Twitter to impose 20% tariffs on European-made cars exported to the US, pressuring European automakers including Italy's Fiat Chrysler and Germany's Daimler.
“The underlying tensions between the US and China continue to escalate, and while neither wants a trade war, the US won't accept the status quo, and China won't change its industrial policy,” Rabobank senior strategist Michael Every told AFP.
Many analysts have expressed scepticism that a trade war is inevitable. Still, anxiety is rising.
“The hope is that the Trump administration's tough approach towards its trading partners is a negotiating tactic and the growth-killing implications of an all-out trade war will be avoided,” said Bob Schwartz, senior economist at Oxford Economics. “The latest salvo by Trump on Friday, threatening to impose a 20% tariff on European auto imports, is clearly not encouraging”.
Key figures around 2100 GMT
New York – Dow Jones: UP 0.5 % at 24,580.89 (close)
New York – S&P 500: UP 0.2 % at 2,754.88 (close)
New York – Nasdaq: DOWN 0.3 % at 7,692.82 (close)
London – FTSE 100: UP 1.7 % at 7,682.27 (close)
Frankfurt – DAX 30: UP 0.5 % at 12,579.72 (close)
Paris – CAC 40: UP 1.3 % at 5,387.38 (close)
EURO STOXX 50: UP 1.1 % at 3,441.60 (close)
Tokyo – Nikkei 225: DOWN 0.8 % at 22,516.83 (close)
Hong Kong – Hang Seng: UP 0.2 % at 29,338.70 (close)
Shanghai – Composite: UP 0.5 % at 2,889.76 (close)
Euro/dollar: UP at US$1.1658 from US$1.1604 at 2100 GMT
Pound/dollar: UP at US$1.3260 from US$1.3240
Dollar/yen: DOWN at 109.98 yen from 109.99 yen
Oil – Brent Crude: UP US$2.50 at US$75.55 per barrel
Oil – West Texas Intermediate: UP US$3.04 at US$68.58 per barrel — AFP
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