KUALA LUMPUR (July 11): The FBM KLCI retreated in early trade this morning, tracking regional markets as the U.S. rattled markets with its decision to impose additional tariffs on China imports.

At 9.05am, the FBM KLCI dipped 3.55 points to 1,683.58.

The early decliners included British American Tobacco (M) Bhd, Heineken Malaysia Bhd, Malayan Banking Bhd, SP Setia Bhd, Axiata Group Bhd, Supermax Corp Bhd and Genting Bhd.

Asian stocks retreated and perceived safe havens such as the yen and U.S. Treasuries rose on Wednesday after the United States said it would impose tariffs on an extra 200 billion worth of Chinese imports, sharply escalating the trade war between the world's two biggest economies, according to Reuters.

Washington decided to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday, it said.

JF Apex Securities Research in a market preview said US markets rose overnight following investor optimism as the corporate earnings season kicked off.

It said similarly, European stocks advanced as focus moved away from trade war towards quarterly results.

“On the local market, the FBM KLCI rose 14.50 points to 1687.13 points.

“Following the bullish performance in the US and Europe, the FBM KLCI is expected to extend its rebound and climb towards the resistance of 1700 points,” it said.