KLCI ends 10.78 pts lower after US announces tariffs on Europe

KLCI ends 10.78 pts lower after US announces tariffs on Europe
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KUALA LUMPUR (Oct 3): The FBM KLCI closed down 10.78 points or 0.68% today, after Asian shares fell substantially as the US' announcement of new import tariffs on European Union (EU) imports, hit world market sentiment.

At 5pm, the KLCI closed at 1,564.12, led by Public Bank Bhd and Press Metal Aluminium Holdings Bhd's share price drop.

Public Bank closed 42 sen or 2.13% lower at RM19.28 to be the top-percentage decliner among the 30 KLCI stocks. Press Metal ended down nine sen or 1.88% at RM4.69.

AxiTrader Asia Pacific market strategist Stephen Innes wrote in a note today saying  Malaysia's Budget 2020, which will be announced this Oct 11, "is now being viewed as the next significant catalyst which is likely keeping foreign investors cautious on local bonds, equities and currency."

Earlier today, Hong Leong Investment Bank Bhd wrote in a note that investors may adopt a defensive yield-seeking strategy, amid the current market backdrop.

"Overall, we will likely see defensive yield seeking to be the dominant investment style in the near term," Hong Leong said.

Globally, Reuters reported Asian stocks tumbled to a one-month low on Thursday, as already-growing market fears about global growth were fanned by the US announcement of new import tariffs on products from the EU.

It was reported that Washington will enact 10% tariffs on Airbus planes, and 25% duties on French wine, Scotch and Irish whiskies and cheese from across the continent, as punishment for illegal EU aircraft subsidies.

EU manufacturers are already facing US tariffs on steel and aluminium, and a threat from the US to penalize EU cars and car parts, according to Reuters.