Market turbulence to continue
Cheah Chor Sooi | 30 Mar 2018 00:30
The US$50-60 bil targeted by potential tariffs could affect up to 10-12% of Chinese exports to the US
A second round of global equity market sell-off and return of market volatility may be looming across emerging markets (EM), no thanks to escalated concerns over the US initiating trade protectionism measures on China.

A day after the Federal Reserve raised interest rates by 25 basis points (bps) to 1.5%-1.75% on March 21 alongside hints of another two rate hikes for this year, global stock market sentiment was further dampened after President Donald Trump announced tariffs on US$60 bil (RM231.6 bil) worth of Chinese imports.

Reigniting trade war concerns, the move triggered a sell-off on Wall Street with the Dow Jones Industrial Average plummeting more than 1,100 points between March 22 and 23, ending the week in correction territory as it closed 10.4% below its late-January high.

On March 27, the Dow dipped 1.43% or 344.89 points to 23,857.71 as a sell-off in the technology sector fuelled a rout that wiped out much of the previous day’s sizable gains.