Another bad day for markets after Trump threatens to delay trade deal


  • Markets
  • Wednesday, 04 Dec 2019

Stephen Innes, chief market strategist at AXITrader said the fact that Trump has threatened trade levies across three continents in the span of 24 hours, not only suggests "Tariff Man" is back, but he's returned with a vengeance.

KUALA LUMPUR: Key Asian markets and Bursa Malaysia extended their losses early Wednesday after US President Donald Trump’s comments that a US-China trade deal could be after the 2020 presidential election.

At 9.19am, the FBM KLCI fell 6.87 points or 0.44% to 1,555,40. Turnover was 228.20 million shares valued at RM104.86mil. There were 131 gainers, 213 losers and 234 counters unchanged.

Reuters reported investors turned to safe-haven assets, boosting bond prices and sending gold to a one-month high, while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4%, Reuters reported.

Japan's Nikkei dropped 1% in early trade. Australia's S&P/ASX200 was down 1.6%, having shed almost 4% since closing on Monday.

Meanwhile, Stephen Innes, chief market strategist at AXITrader said the fact that Trump has threatened trade levies across three continents in the span of 24 hours, not only suggests "Tariff Man" is back, but he's returned with a vengeance.

“But the biggest headline bomb was a Fox news report suggesting the US is still going ahead with the Dec. 15 tariffs, which, if officially confirmed, could be the ultimate poison pill for US-China trade talks.

“And who would have thought the NATO summit would be the big risk event of the week. But offer up President Trump a soapbox to stand on, especially in a global forum, and he will do his best to steal the stage.

“This latest run of trade headlines should be a stark reminder that the US administration foreign policy is American first, and nothing else matters. And perhaps President Trump is weaponising tariffs as a not so subtle reminder to NATO of his foreign policy stance, ” Innes said.

At Bursa on Tuesday, foreign funds were net sellers at RM260.6mil while local institutions were net buyers at RM214.6mil and local retail investors at RM46mil.

Nestle fell RM1.20 to RM143.80, PPB 22 sen to RM18, Genting Plantations 14 sen to RM10.06 while IOI Corp, Petronas Dagangan and CIMB fell eight sen each to RM4.31, RM23.22 and RM5.07 respectively while Westports lost six sen to RM4.11.

Heineken was the top gainer, up 18 sen to RM26.48, UEM Edgenta 16 sen to RM3.16, Edaran 15 sen to 55 sen and IGBB 13 sen to RM3.53.

Mudajaya was the most active with 14.34 million shares done, up 3.5 sen to 38 sen.


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trade war , tariffs , Trump , NATO , Stpehen Innes

   

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