Will the bulls return in 2H2019?
Cheah Chor Sooi | 10 May 2019 00:30
US president Donald Trump surely couldn’t have chosen a worse time to end the five-month USChina trade war truce.
His decision to raise tariffs on US$200 bil (RM830.34 bil) worth of Chinese goods to 25% (from the current 10%) by the end of this week - and “soon” targeting the remaining Chinese imports with tariffs - coincided with the imminent rebound of Bursa Malaysia.
With investors left to interpret Trump’s recent tweet - if the president was serious or it was just a negotiation tactic - the Dow Jones Industrial Index sank 1.79% or 473.39 points on May 7 to 25,965.09, its worst day since Jan 3 when Apple warned it would miss its earnings forecast because of weak iPhone sales in China.
Already dubbed one of the worst major global markets by Bloomberg, the benchmark FBM KLCI Index has year-to-date (YTD) slipped 3.67% (as of May 8) and is down 12.4% from a postelection high of 1,858.26 points recorded on May 16 last year.
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