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STI up on 'relief rally' after Fed move

One economist says markets are underestimating the potential for a sequence of rate hikes over the next couple of years

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A volatile session on Tuesday ended with the Straits Times Index first sinking to an intraday low of 2,820 before recording a modest loss of 1.74 points at 2,834.23 at 5pm, most likely in anticipation of a Wall Street rebound on Tuesday.

THE US Federal Reserve did what was expected of it when it raised its short-term interest rates by 25 basis points on Wednesday, prompting what some believe is a "relief rally" in stocks. The logic is that markets have agonised over when the first rate hike would occur and when it finally did