THERE was no doubt that the US Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday was the biggest event of the week just passed, even though everyone knew with almost complete certainty that there would be no interest rate hike.

In the days leading up to the meeting, the federal funds futures market was pricing in an 80 per cent chance the Federal Reserve would not act, which as it turned out was the case.

Still, although the script played out as markets expected, it gave traders an excuse to either buy or cover their shorts on Monday and Tuesday, especially since there was also a Bank of Japan meeting where more monetary easing was expected. For the week, the Straits Times Index (STI) gained about 30 points or just over one per cent, including Friday's 10.89-point rise.