FOMC, telco play help STI rise 1.1% over the week

THE March 14-15 Federal Open Market Committee (FOMC) meeting was arguably the main feature of the past week, one whose outcome was just what the market wanted - an interest rate hike followed by guidance that there will probably be only two more for the rest of 2017.

This much was well-publicised in the aftermath of the market's "relief rally", described as such because there had been worry before the meeting that the FOMC might signal three more hikes instead of two.

Less publicised, however, but certainly just as relevant was that the Atlanta Federal Reserve's most current forecast of US first-quarter GDP growth was downgraded from 1.2 per cent to 0.9 per cent. In early February, the forecast was 3.2 per cent, so despite all the hoopla about a robust US economy, the reality is much more sobering.