Investor concerns over the US Federal Reserve (The Fed) raising interest rates more than three times throughout 2018 caused a correction in global stock markets year-to-date (Ytd). Further anxieties surrounding the US-China trade war prompted investors to withdraw from the stock market.
Based on Bloomberg data, the Jakarta Composite Index (IHSG) on April 9, 2018 (until 2:30 PM WIB) stood at 6,218, representing a 2.17% decline from its year-end position of 6,354. This decrease followed significant corrections in other global markets, such as the London Stock Exchange (-6.18%), the Shanghai Stock Exchange (-5.11%), and the Tokyo Stock Exchange (-4.77%). Conversely, the Malaysian stock market saw a 2.78% increase, and the Singaporean market rose by 1.21%.
As is known, the US administration under President Donald Trump published a list of 1,300 goods from China targeted for increased import tariffs. However, the imposition of these tariffs will not be immediate, as the US government will first hold public hearings for businesses on May 15.