Once again, bad news is good for stocks
Markets appear to be happier with a weak economic outlook since this means more stimulus from central banks
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
THE "bad news is good for stocks" mode of investing made its unsurprising return on Thursday as the Straits Times Index rose 35.96 points to 2,880.17 in response to the US Federal Reserve's Wednesday decision to keep interest rates unchanged, and the likelihood that it will only raise rates twice this year instead of four times because of the weakening economic outlook.
Turnover, which on Wednesday sank to its lowest this year, improved to 1.6 billion units worth S$1.2 billion. Excluding warrants there were 277 rises versus 130 falls.
One observer remarked: "The index plunged in January and February because of China and oil worries and recovered in March because oil bounced and China cut interest rates."
Copyright SPH Media. All rights reserved.
