KUALA LUMPUR (July 16): The FBM KLCI edged up in early trade this morning but gains were seen limited in line with the slower start at most regional markets. At 9.05am, the FBM KLCI ws up 1.23 points to 1,723.16. The early gainers included United Plantations Bhd, Tasek Corp Bhd, Carlsberg Brewery Malaysia Bhd, Malaysian Pacific Industries Bhd, Hengyuan Refining Company Bhd, DiGi.Com Bhd, Globetronics Technology Bhd, Top Glove Corp Bhd, AirAsia Grup Bhd and Supermax Corp Bhd. Asian shares were lower on Monday, brushing off the firmer Wall StreetRead More
NEW YORK: Global stock markets advanced Friday, overcoming earlier wobbles prompted by China and the United States firing opening salvos in a trade war that pits the world's two biggest economies against each other.
Wall Street gained on the back of a solid US employment report that was strong enough to reassure investors of the health of the economy, but did not exhibit robust enough wage growth to suggest the Federal Reserve will need to raise interest rates more aggressively.
All three major US indices ended higher, with the Nasdaq chalking up its second straight gain of more than one percent.
European markets finished modestly higher, even as trade worries remained investors the biggest concern, dealers said.
US President Donald Trump on Friday rolled out 25 percent tariffs on $34 billion of Chinese goods in what Beijing called the “largest trade war” in economic history.
China said it was hitting back with retaliatory measures on US goods but did not immediately providing precise details on what products would be targeted in the first wave.
Impact 'limited for now'
“Trump is bringing the world close to a genuine trade war,” said Holger Schmieding, chief economist at Berenberg.
But in the end, European and US markets followed the example of Asian markets which gained as investors went bargain-hunting, dealers reported.
Tokyo stocks led the gains in Asia, closing 1.1% higher, with markets in Shanghai and Hong Kong up by around half a percentage point.
Li Daxiao, analyst at Yingda Securities, said news of the tariffs had already been priced in.
“After the US tariffs announcement, the negative news finally came out and has already been digested over recent weeks. Therefore investors are not in as much of a panic as before, and the market sentiment will reverse,” Li said.
Stanley Chik, from Bright Smart Securities International in Hong Kong, said “the impact of tariffs on economic growth appears limited for now, giving the market a breathing spell.”
But these could be just the first skirmishes in a long war, with financial markets worried about a knock-on effect on the wider global economy and the broader trading system.
Trump has threatened to impose tariffs on as much US$450 billion annual Chinese imports — virtually all of China's exports to the US — as he seeks to advance his “America First” protectionist agenda.
Beijing has accused the US of “firing on the whole world” with the measures, pointing out that most of the Chinese goods under attack are made by companies with large foreign investment — including American.
Key figures around 2030 GMT
New York – Dow: UP 0.4% at 24,456.48 (close)
New York – S&P 500: UP 0.9% at 2,759.82 (close)
New York – Nasdaq: UP 1.3% at 7,688.39 (close)
London – FTSE 100: UP 0.2% at 7,617.70 points (close)
Frankfurt – DAX 30: UP 0.3% at 12,496.17 (close)
Paris – CAC 40: UP 0.2% at 5,375.77 (close)
EURO STOXX 50: UP 0.2% at 3,446.66 (close)
Hong Kong – Hang Seng: UP 0.5% at 28,315.62 (close)
Tokyo – Nikkei 225: UP 1.1% at 21,788.14 (close)
Shanghai – Composite: UP 0.5% at 2,747.23 (close)
Euro/dollar: UP at US$1.1744 from US$1.1691 at 2100 GMT Thursday
Pound/dollar: UP at US$1.3281 from $1.3222
Dollar/yen: DOWN at 110.43 yen from 110.64 yen
Oil – Brent Crude: DOWN US$0.28 cents at US$77.11 per barrel
Oil – West Texas Intermediate: UP US$0.86 cents at US$73.80 per barrel
US$1 = RM4.04
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NEW YORK: European stock markets rebounded on Friday after the EU struck a deal on migration, while Wall Street eked out modest gains behind an advance in petroleum-linked shares.
Key eurozone markets in Frankfurt and Paris were up by around one percent, with London posting much more modest gains.
“European markets are rising nicely in the wake of a migration deal in the European Union,” Charles Schwab analysts said.
The euro firmed on the deal, and was further underpinned by eurozone inflation rising to 2.0%, increasing expectations of an end to the European Central Bank's stimulus program in December.
EU leaders clinched a hard-won migration deal during all-night talks that Italy's hardline new premier said meant his country was “no longer alone” in shouldering the responsibility for migrants.
They also offered a concession to German Chancellor Angela Merkel, who faces a rebellion from within her own coalition government, with moves to stop migrants registered in Italy and other EU countries from moving to Germany.
Still, EU President Donald Tusk warned that difficult work lay ahead to make the agreement work in practice.
Wall Street stocks rose for a second day in a row, with petroleum-linked shares advancing as US oil prices closed at a fresh three-and-a-half year high.
Still US equity markets ended well below their session peaks, with several large banks, including Bank of America and JPMorgan Chase, finishing in negative territory after surging in the morning.
Analysts have cited worries about lower US Treasury yields, in addition to ongoing trade anxiety.
Flash in the pan?
“The week is ending in a very different frame to which it began, with solid gains for equities in the UK, Europe and across the Atlantic,” said Chris Beauchamp, chief market analyst at IG.
He wondered, however, whether this might be “just a flash in the pan, based on a misreading of the current ongoing trade war situation.”
Canada on Friday unveiled hefty tariffs on US$12.6 billion (RM50.8 billion) in US goods in retaliation for American tariffs on Canadian aluminum and steel.
Asian stock markets mostly closed higher at the end to a tumultuous quarter for global equities, with China-US trade tensions showing no sign of calming.
Trading floors have witnessed heavy selling in the past three months, as the two biggest economies exchanged threats of tariffs on tens of billions of dollars of imports, fueling fears for global growth.
An increasing source of concern for many investors is China, where the main stock market is in bear territory after losing more than 20 percent from a recent peak and the yuan continues to struggle.
Many analysts warn any trade war with the United States would likely hurt Beijing more, with growth in the Asian giant already showing signs of slowing this quarter and authorities looking to provide support.
Key figures around 2100 GMT
New York – Dow: UP 0.2% at 24,271.41 (close)
New York – S&P 500: UP 0.1% at 2,718.37 (close)
New York – Nasdaq: UP 0.1% at 7,510.30 (close)
London – FTSE 100: UP 0.3% at 7,636.93 points
Frankfurt – DAX 30: UP 1.1% at 12,306.00 (close)
Paris – CAC 40: UP 0.9 percent at 5,323.53 (close)
EURO STOXX 50: UP 0.9% at 3,395.60 (close)
Tokyo – Nikkei 225: UP 0.2% at 22,304.51 (close)
Hong Kong – Hang Seng: UP 1.6% at 28,955.11 (close)
Shanghai – Composite: UP 2.2% at 2,847.42 (close)
Euro/dollar: UP at US$1.1689 from US$1.1569 at 2100 GMT Thursday
Pound/dollar: UP at US$1.3213 from US$1.3078
Dollar/yen: UP at 110.61 yen from 110.49 yen
Oil – Brent Crude: UP US$1.59 at US$79.44 per barrel
Oil – West Texas Intermediate: UP 70 cents at US$74.15 per barrel — AFP
US$1 = RM4.03
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The benchmark index for Bursa Malaysia, the FBM KLCI, rose 1.2 per cent in a week to 1,778.32 points last Friday. Generally bullish global markets performances have lifted market confidence to bargain hunt after two weeks of declines. However, the market was supported by local participants while foreign participants continued to sell. Foreign institutions […]